Elkins Park Man Sues Apple
The local shareholder says he doesn't like the way Apple pays its executives.
Just as Apple spent its Valentine's Day shelling out $2.5 billion to its shareholders, it got news of a new suit coming from a Pennsylvania man.
According to an article in Computer World magazine, Brian Gralnick, of Elkins Park, has been a shareholder since 2007. He is filing a lawsuit against Apple in order to change two of its shareholder policies.
A report on Reuters stated that the local man is ultimately trying to make two differences.
"Apple Inc. was hit by another shareholder lawsuit, a case that is similar to the court challenge that star hedge fund manager David Einhorn brought as part of his push to unlock the company's cash hoard," said the Reuters article. "The new lawsuit, filed by an investor from Pennsylvania in U.S. District Court in New York, seeks to block Apple from moving forward with a Feb. 27 shareholder vote on two proxy proposals."
His lawyer said in addition to the proposal Einhorn filed to "eliminate from the company charter Apple's ability to issue preferred stock," his client is also seeking to change an "advisory 'say-on-pay' vote for shareholders to weigh in on Apple's executive compensation."
The creators of the iPod, iPhone and MacBook products does not release how its top executives are paid, and Grainick hopes to change that.
"The case has some overlap with the Einhorn case, but it is a broader case," said Arnold Gershon, a lawyer for Gralnick at the Philadelphia-based law firm Barrack, Rodos & Bacine, in a release to the press.
A report in MacDailyNews.com said the amount of stakes Grainick owns has not been released.
According to Tech Crunch, Apple is none to happy about either suit.
"Apple alleges that activist investor David Einhorn is attempting to hold other shareholders 'hostage' to a proposal that does not serve the 'public interest,' in its response to a legal challenge by the Greenlight Capital chief executive," said the Tech Crunch article.
According to Reuters, an Apple spokesman had no immediate comment on the case with Grainick.