Einhorn drops dividend lawsuit against Apple after court rules in his favour

Hedge fund manager David Einhorn has withdrawn the Greenlight Capital-led lawsuit against Apple following a court decision last week in his favour. The injunction handed down by US District Judge Richard Sullivan prevents Apple from carrying out a shareholder vote on a proposal to quash its ability to issue shares at will.

The iPhone manufacturer had sought to move forward with the controversial proposal before Einhorn challenged it.

Einhorn was looking to unlock Apple's $137 billion (£91 billion) cash serve and have the company issue preferred shares, or "iPrefs", with a permanent four per cent dividend. He said in court that Apple's proposal would have convoluted future attempts to issue such securities.

Many of Apple's major investors have urged the company to grow the dividend and share-buyback program that it set up shortly after Steve Jobs' passing, especially as its shares continue to tumble.

Apple has not responded to requests for comments on the matter so far.