A federal court in New York ruled late today that David Einhorn’s Greenlight Capital has clearly demonstrated its case against a plan from Apple Inc. (NASDAQ: AAPL) that would have put to a shareholder vote the company’s proposal to eliminate preferred stock. The court granted a temporary injunction to Einhorn and Greenlight on this issue, but rejected a requested injunction that would have allowed Einhorn to add a proposal giving shareholders an advisory vote on executive pay.
Einhorn has been pushing a proposal that Apple issue perpetual preferred stock to existing shareholders which would pay a dividend while still allowing the company to retain a substantial cash hoard to use for corporate purposes. Apple had included in its proxy statement a proposal to eliminate the company’s preferred stock.
Apple’s shareholders’ meeting is scheduled for this coming Wednesday. That’s still several days away and we’d be willing to be that this is not the last word on this subject, either from Einhorn or Apple.