Apple sues recycler for allegedly reselling 100,000 iPhones, iPads and Watches2020-10-05 17:55 by Daniela
Tags: Apple, iPhone, iPad
Apple is suing former recycling partner GEEP Canada — now a part of Quantum Lifecycle Partners — for allegedly stealing and reselling at least 103,845 iPhones, iPads, and Watches it was hired to disassemble.
Recently, Apple became suspicious during a warehouse audit when it found that GEEP housed some of its devices in an area not covered by cameras. So Cupertino checked the serial numbers of the products GEEP had received between 2015 and 2017. It found that 18 percent of the 531,966 iPhones, 25,673 iPads, and 19,277 Apple Watches were active on cellular networks.
Apple is seeking $31 million CAD ($22.7 million US) from its former partner. GEEP hasn't denied the theft, but claims that three employees stole the devices to benefit themselves, not the company. Apple countered that the employees were in fact GEEP's senior executives.
"At least 11,766 pounds of Apple devices left GEEP's premises without being destroyed—a fact that GEEP itself confirmed," said the court filing. "These misappropriated devices were then subsequently sold at a significantly higher price than other recycled materials to downstream vendors who refurbished and resold the devices to consumers. The scheme was extensive and included members of GEEP's senior management. GEEP's officers and directors knew or ought to have known about the scheme."
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