Hedge fund manager and activist investor, David Einhorn has filed a law suit against technology giant, Apple demanding that a larger part of the company's 137 billion dollars in cash should be distributed to the investors.

Einhorn, who is working as the hedge fund manager at Greenlight Capital, filed the lawsuit against the company in New York. He is also seeking a court order directing Apple to allow a vote by shareholders on the company's ability to issue preferred shares that come with dividend payments.

He said that some proposals that are likely to be presented at company's annual shareholders meet on 27 February, 2012 will make it more difficult for the company to issue preferred shares to the company. The shareholders of Apple currently own about a third of the entire company.

Investors are not sure why the company holds large sums of money in low-yielding investments instead of distributing it to the investors. The company had announced its plans to return 45 billion dollars to the shareholders and it has already returned 10 billion dollars. Apple also said that it is looking for ways to return more money to the shareholders.

"As part of our review, we will thoroughly evaluate Greenlight Capital's current proposal to issue some form of preferred stock. We welcome Greenlight's views and the views of all of our shareholders," said Apple.