Speaking at the Goldman Sachs Technology and Internet Conference Tuesday morning, Apple CEO Tim Cook called the stock-related lawsuit against the company from Greenlight Capitol's David Einhorn a "silly sideshow," and questioned why anyone would want to sue Apple for doing what's good for shareholders.
Cook says Greenlight stock lawsuit is "silly"
When asked about the lawsuit by Goldman Sachs analyst Bill Shope, Mr. Cook said he welcomes input from shareholders.
Mr. Einhorn, who happens to be an Apple shareholder himself, filed the lawsuit against Apple because he feels the company should give more money to shareholders, and he wants to see preferred stock as an option, too.
"Apple has a problem, we think," Mr. Einhorn said about his lawsuit. "It has a cash problem."
Mr. Cook sees the real issue to be company governance. He told Mr. Shope,
We decided to eliminate the ability to issue blank check shares ourselves. We could still do it, but would have to go to shareholders for approval. So frankly, this seems bizarre to me that we're being sued over something that's good for shareholders.
Judge Richard Sullivan agreed to step up the pace of the Greenlight lawsuit to accommodate Apple's February 27 shareholder meeting. Apple must now submit a response to the lawsuit by the end of the day on Wednesday, February 13, and both sides will present oral arguments on April 19.
Apple's stock is currently trading at US$474.73, down 5.20 (1.08%).