Einhorn Company is going to sue Apple

Posted by Kristi Scott February 11, 2013 0 Comment 437 views


This is definitely not Apple’s year at all as the company is suffering from everything possible whether it is losing their market value or getting sued. Apple is now getting due by Einhorn Company, one of the most important investment companies in the United States. The investment company wants to unlock their massive billion wars over dividend potentials. This is clearly a sign that the unrest between both companies is growing especially that the performance of Apple in the stock market is getting worse.

The manager of hedge funds in the company, David Einhorn, is obviously agitated because he was the one who proposed the lawsuit that is also going to go through shareholding voting at the end of this month. Einhorn Company is urging shareholders to turn down Apple’s proposal related to the proxy issues because this is going to make it harder to issue stocks especially when it comes to preferred stocks. Issuing these types of stocks is one of the most significant ways that companies use to return any money or debt to shareholders. Apple is clearly under attack from several other shareholders especially that the value of their stock is decreasing. Apple stock shares are definitely getting worrying, especially that they reached their highest level in seven years at the end of last year.

It is believed that Apple is going to lose the remaining value of their shares during the next few months. Apple has also issued a clear statement explaining ‘’our management has been involved in discussions about paying back shareholders additional cash.’’  After this statement was released, the shares of the company ended at $400 during the trading process. During a trading conference that took place in May, the investment company described their new plan to return money to shareholders using preferred stock.

The company also suggested that Apple is going to use dividends worth 4% to end their debts. They also explained that many investors are going to be capable to pay higher premiums when the company issues stock. This issue is going to be solved by the end of this month when shareholders vote to turn down or accept the proposal introduced by Apple. Depending on the decision, the investment company will have to decide whether they want to continue the lawsuit or not. This is definitely going to be a very strong battle between the two companies during the next few months.


About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

View all post by Kristi Scott Visit author's website

Write Your Comment