Apple's Cook calls investor lawsuit a 'silly sideshow'

SAN FRANCISCO -- Apple CEO Tim Cook this morning spoke at the Goldman Sachs Technology and Internet conference, addressing questions about the company's growth, innovation and calls for increased dividends.

David Einhorn, the billionaire manager of Greenlight Capital, sued Apple last week in a bid to pressure the company over the distribution of dividends. Einhorn's Greenlight holds 1.3 million Apple shares.

"It's a silly sideshow," Cook told investors at the Palace Hotel event here.

Shares of Apple fell 1% to $475.43 in midday trading.

Cook pointed out that Apple has already begun to return $45 billion to investors through dividends and buybacks.

Apple is scheduled for a shareholder meeting Feb. 27. Einhorn is calling on shareholders to vote down the proposal on Apple's proxy that would make it more difficult for the company to issue preferred stock. Issuing preferred stock -- shares of stock that often carry a large dividend yield -- is a popular way for many cash-flush companies to return money to shareholders.

Einhorn has criticized Apple for holding onto its $137 billion in cash with a depression era mentality.

"Apple doesn't have a depression era mentality," he said.

The vote over proposal 2 has been a polarizing issue, with CalPERS, or the California Public Employees' Retirement System, taking Apple's side.

"It just says that we would need to go to our common shareholders to approve it," Cook said. "Frankly, I find it bizarre that we would find ourselves being sued for doing something that's good for shareholders."