Apple gets hit with another investor lawsuit

Apple has been hit with another investor lawsuit, this time from Brian Gralnick of Elkins Park, who seeks to block Apple's plans for shareholder vote on two proxy proposals which is to be held on February 27th. Previously, influential investor, David Einhorn, sued Apple in a bid to get them to release some of their gigantic $127 billion cash hoard, citing a breach of a Securities and Exchange commission rule which prohibits companies from "bundling" unrelated matters into one shareholder vote. Einhorn's case is due to be heard later this month, with Gralnick seeking to appear in the hearing. 

Gralnick says there is "some overlap with the Einhorn case", but he is also suing Apple on another matter, which includes shareholders say on top executives pay and how it is decided; he claims that Apple did not disclose details of how executives pay is decided and gave shareholders no option to vote. The lawsuit does not state how much Apple stock Gnalnick holds. 

Tim Cook has described Einhorn's lawsuit as "a silly slideshow" which distracts Apple from their main goal: innovation. However, many investors feel that more of Apple's $127 billion cash hoard should be shared out. 

Reuters notes: "The claim of inadequate executive pay disclosure in Wednesday's case follows other lawsuits in recent months filed against companies seeking injunctions ahead of say-on-pay votes. The cases have been met with varied success." Whether Einhorn's and Gnalnick's cases will fare well in court remains to be seen. 

Source: Reuters

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People like David Einhorn need to be chained to a fence post and beaten without mercy - if you don't like how Apple is run then don't invest in them.

So the answer is, continue to let them break the rules (which has yet to be determined) and invest elsewhere?

So...if I don't like how the government is run, I shouldn't lobby for change and instead move to another country?

Interesting stance you got there. Beat down those who oppose something they consider wrong.

David Einhorn deserves no fans! Google: notes-on-david-einhorn-the-predator-in-a-cute-t-shirt

He was investigated for market manipulation by The U.S. Securities and Exchange Commission and he was fined in the UK for insider trading.

He invests in companies than spouts propaganda to manipulate stock price before he shorts the stock.

He basically wants Apple to give all its money to investors (something expected mostly from a non-growth company), so people will buy the stock and he can sell it.

hope they pay the price, im sure loads of big companies brake the rules. i also lolled at the innovative part ><

I don't think it has to do with being unfair, as much as wrong. Apple is a publicly traded company and if they are breaking rules, they need to be put back in line. You could put any company name in that sentence and it is still true.

The question is though are they actually breaking the rules. Just because someone claims it doesn't make it true. There are billion dollar portfolios out there with stock in Apple that have hundreds of analysts checking financials and business paperwork and we are to believe that every single one of them missed this?

Dividends are going away in the modern stock market... so no. If you want a constant flow of income, invest in bonds, not stocks.

EDIT: They still do pay dividends, but rarely. And the dividends they just paid these past to times(one of which was 7 days ago), is significantly higher than your MS overlords are paying you. The next dividends from MS is 1% of what Apple paid. The dividends before that, 10%. But hey, don't let facts get the way of your fanboyism.

Edited by ILikeTobacco, Feb 14 2013, 1:38pm :

ILikeTobacco said,
Dividends are going away in the modern stock market... so no. If you want a constant flow of income, invest in bonds, not stocks.

EDIT: They still do pay dividends, but rarely. And the dividends they just paid these past to times(one of which was 7 days ago), is significantly higher than your MS overlords are paying you. The next dividends from MS is 1% of what Apple paid. The dividends before that, 10%. But hey, don't let facts get the way of your fanboyism.

Two things for both of you..

1. Apple paid out 3 times since the first time in a long time starting last year.

2. True, a higher payout out per share.. But payout as a % of current share value.... MSFT was paying out more most of the time.. So, more pay from Apple per share, more % per share from MSFT. So, buy more of a cheeper (per share) of MSFT shares for the same amount you might spend on a single Apple share and you would would make out better on dividends.. Basically, MSFT still has a better dividend per share from what I can find.

I don't see how making sure a company meets their legal obligations is a distraction from whatever innovation might be taking place. It's not like finances are handled by their product development department. By pointing to the high priority of "innovation", Tim Cook is the one trying to distract.

"Tim Cook has described Einhorn's lawsuit as "a silly slideshow" which distracts Apple from their main goal: innovation."

It is to the edge of the legality. By law, all profit business share the same main goal :money for the shareholders.

An overvalued stock normalizes and everyone starts pointing fingers... This is probably just the beginning.

I never held Apple stock, but a vote on Executive pay is so commonplace that I would be shocked if it was being neglected and only came up now...

which includes shareholders say on top executives pay and how it is decided; he claims that Apple did not disclose details of how executives pay is decided and gave shareholders no option to vote.

Unless I'm mistaken (and I very well could be) isn't that a requirement for public companies?

Yes I got that LOL what I'm more interested in is why nobody said anything for years now? And isn't it the SECs job to make sure financial reports are done correctly?

When a stock goes through the roof and people get rich, they don't sweat the details too much.

When the stock slows down and people aren't making tons of money anymore, detail time.

"Tim Cook has described Einhorn's lawsuit as "a silly slideshow" which distracts Apple from their main goal: innovation."

I'm not seeing any innovation as of late, therefore they must be very distracted.

Get the joke?

maxslaterrobins said,
iPod, iPhone, iPod etc. don't count as innovation?

No. Most of their technology isn't innovative. Their strength is marketing and making "existing" technology appealing to the masses.

The old "state iPhone twice" trick. Nice. I had an MP3 player long before apple "invented" the iPod.

How many years ago did any real innovation take place?

KSib said,

No. Most of their technology isn't innovative. Their strength is marketing and making "existing" technology appealing to the masses.

Perfect example would be if this iWatch stuff is true. Ripping off the little guys who crowd-sourced on kickstarter.

NastySasquatch said,

Perfect example would be if this iWatch stuff is true. Ripping off the little guys who crowd-sourced on kickstarter.

and Microsoft.... and Sony....... and others who already did it before or are just now doing it....

Microsoft, Sony, etc didn't know they have to make devices for dumb people.. because most apple stuff is just dumbed down products.. I guess that's where the "innovation" is.