David Einhorn’s Greenlight Capital Inc. will drop its lawsuit against Apple Inc. over a preferred share measure after the iPad maker agreed to withdraw the disputed proposal.
“Plaintiffs intend to voluntarily withdraw their complaint,” U.S. District Judge Richard Sullivan in Manhattan said in an order dated yesterday.
Greenlight won an injunction Feb. 22 barring Apple from moving forward with a shareholder vote on a measure that could have curtailed the company’s ability to issue preferred shares. The judge sided with the hedge fund’s contentions that the measure was improperly bundled with other items up for vote.
The hedge fund and its founder, Einhorn, have urged Apple to issue high-yielding preferred shares to spread the company’s cash hoard among investors.
“Apple removed the bundled proposal from the shareholder meeting, therefore resolving the issue,” Jonathan Gasthalter, a spokesman for New York-based Greenlight, said in an e-mail.
Steve Dowling, a spokesman for Cupertino, California-based Apple, declined to comment on the case.
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