NEW YORK — With its annual meeting looming and its stock on the decline, Apple is facing a rebellion from an influential investor who wants the company to stop stockpiling cash and give it to shareholders instead.
Greenlight Capital said Thursday it is suing Apple in a New York federal court over the company's proposal to make it more difficult to issue preferred stock. David Einhorn, who heads the investment fund, said the proposal would close an avenue for rewarding shareholders.
Apple is still the world's most valuable company, but its stock has lost 35 percent of its value since September, as its growth has slowed. The company is fabulously profitable, and Wall Street wants it to share more of that money with its shareholders rather than placing it in low-yielding bank accounts.
“Apple has $145 per share of cash on its balance sheet. As a shareholder, this is your money,” Einhorn said in a letter to the company.
In a statement Thursday, Apple said its management and board continue “active discussions” about what to do with the money and will consider Einhorn's proposal.