The Logic has reported that Apple has filed a lawsuit against an Ontario electronics recycling firm over the allegations that the company stole and resold iOS and watchOS devices instead of destroying the devices.
According to Apple’s lawsuit, GEEP Canada has been accused of reselling 100,000 iPhones, iPads and Apple Watches.
Apple reveals that Barrie-based GEEP and its senior management team members were aware of its fraudulent activity. Meanwhile, GEEP has denied every wrongdoing and said when it shut it down immediately it discovered the reselling ring.
Apple is seeking $31 million damages from GEEP with proceeds raked in from selling iPhones, iPads and Apple Watches.
GEEP was employed by Apple in November 2014 to help in recycling old products instead of them being discarded.
According to the lawsuit, Apple says it forwarded 531,966 iPhones, 25,673 iPads and 19,277 Apple Watches to GEEP to be recycled between the start of 2015 to the end of 2017.
The suit explains that “At least 11,766 pounds of Apple devices left GEEP’s premises without being destroyed – a fact that GEEP itself confirmed. 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.”
Apple found out that GEEP was carrying devices into areas not under camera surveillance after the Ontario company’s warehouse was audited. Apple discovered that 18% of the devices shipped to GEEP were very active on wireless carrier networks while devices like Wi-Fi iPads didn’t show up on carrier networks, which makes the total number of stolen products higher.
GEEP said the reselling ring was due to 3 “rogue” employees, Roger Micks, Edward Cooper and Steven White, who sold the items to Fu Yuan Yang at Whitby Recycling. Yang later sold these devices to people in China.
The claim by GEEP’s third-party from July says it wants the employees, Yang and Whitby Recycling to pay damages should Apple wins, and cover its legal fees as well.
The Ontario recycler revealed it had encountered “extensive business losses” owing to the incident and its reputation with Apple which made Apple cancel its contract.
