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February 25, 2013

US Judge blocks Apple’s planned shareholder vote

Apple said it is disappointed with the court's ruling.

By CBR Staff Writer

Apple has dropped its planned vote of shareholders after a US federal judge granted a request by American hedge fund manager, David Einhorn, to block the company from holding a vote scheduled for 27th of this month.

US District Court, Judge Richard Sullivan, backed a lawsuit by Einhorn, who sought for Apple to disburse more of its $137bn cash pile to its shareholders.

In his lawsuit, Einhorn urged all shareholders to vote against Proposal 2 in Apple’s proxy, which eliminates the company’s ability to issue preferred stock.

Sullivan said Apple was wrong to bundle four amendments and ruled that shareholders should get to vote on the amendments separately.

Apple said: "We are disappointed with the court’s ruling. Proposal 2 is part of our efforts to further enhance corporate governance and serve our shareholders’ best interests."

"Unfortunately, due to today’s decision, shareholders will not be able to vote on Proposal #2 at our annual meeting next week," the company said.

Recently, a regulatory filing suggested that Einhorn increased his stake in Apple by about 50% in the fourth quarter of 2012.

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Earlier this month, Apple has been sued by a Pennsylvania investor, Brian Gralnick, in order to stop the company from holding a shareholder vote on two proxy proposals.

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