Einhorn drops Apple shareholder lawsuit

Hedge fund manager David Einhorn has dropped his lawsuit against Apple, ending a brief battle over how the company is using its stockpile of cash to reward investors.

According to MarketWatch, Einhorn's case against Apple was closed following a filing Thursday at a federal court in New York.

Last week, a federal judge blocked Apple from pressing forward with a shareholder vote on a proposal that would have made it more difficult for the company to issue preferred stock to investors.

The vote, which had been scheduled for Wednesday, prompted Einhorn to sue Apple to pry some of of the company's $137 billion in cash for investors.

"Apple is a phenomenal company filled with talented people creating iconic products that consumers around the world love," Einhorn said on Feb. 7, when details of his lawsuit were revealed. "However, like many other shareholders, Greenlight is dissatisfied with Apple's capital allocation strategy."

Two weeks later, Einhorn pitched his own plan to shareholders: preferred stock that would offer more value and avoid dipping into Apple's war chest.

"Our solution is not customary, but we think you will agree that we are presenting the best solution for unlocking the most value for Apple shareholders without impinging in any way on Apple's business plan," Einhorn said.

At Apple's Wednesday shareholders meeting, CEO Tim Cook promised investors "great stuff" to come from the company.

Shares of Apple are down 1.5% at $434.75 in mid-day trading.

Contributing: The Associated Press