Tech giant Apple is getting sued, yet again. But this time it’s not by a fellow multi-million dollar company like Samsung, but one of its very own shareholders.
David Einhorn, a hedge fund manager from the US, has filed the lawsuit against Apple, claiming that the company is failing to share its massive cash pile with its investors. The accuser told the American news channel, CNBC, that Apple has a “Depression-era mentality” in that it stores its massive $137bn, which equates to around £87bn, in its own bank accounts in case of future hard times, instead of giving back to its shareholders.
Einhorn has made the suggestion that Apple should release some of its funds to investors via what is known in the business arena as ‘preferred’ stock, which works by paying a fixed dividend over a set time period. Preferred shares also have a higher value than ordinary shares. However, Apple has been planning on scrapping these preferred stocks at a shareholding meeting later this month.
Einhorn is not a newcomer to throwing the cat amongst the pigeons within the business world, though. In 2011 he argued that Microsoft should remove its CEO, Steve Ballmer, who he claimed was “stuck in the past”. While CNBC reporter, Jim Cramer, has agreed that Einhorn’s issues with Apple are valid, he argues that actually suing such a powerful and reputable company is “very wrong headed and an unfair move”.
It seems that not a day goes by without Apple hitting the news for its involvement with some form of legal action. Whether this particular case will come to anything, we will have to wait and see. My guess is that the accuser in question might be persuaded, in one way or another, to drop the case entirely.Written by Charlotte Kertrestel