David Einhorn of Greenlight Capital has dropped a lawsuit against Apple, after he succesfully blocked the iPhone maker from moving forward with a shareholder vote on a controversial proposal.
Greenlight, a shareholder since 2010 with 1.3 million Apple shares worth nearly $600 million, was dissatisfied
with Apple's proposal to eliminate preferred stock, as such a moe would close down one avenue for Apple to reward shareholders with more cash.
Apple had sought to limit its ability to issue preferred shares without a shareholder vote, but Einhorn challenged that in court.
U.S. District Judge Richard Sullivan ruled in Einhorn's favor last week. The preliminary ruling blocked Apple's proposal that would have required shareholder approval before preferred stock could be issued. Apple withdrew the proposal from the agenda at its annual meeting, so Einhorn dropped his lawsuit.