Apple sues a partner for stealing 100,000 products |
Apple has filed a lawsuit against its former electronics recycling partner, accusing it of selling nearly 100,000 iPhones, iPads and Apple Watche for recycling.
Apple is committed to making the recycling process more efficient and relies on some partner companies to take the entire process to their own facilities.
Apple reportedly estimated that its former partner (Geep Canada), who was set for recycling, stole around 100,000 iPhones, iPads and Apple Watch.
Geep Canada did not deny the theft, but it has filed a counter-lawsuit accusing three employees of theft without their knowledge.
Apple said these employees were Geep Canada's top executives.
The case has now been revealed publicly, but Apple filed a lawsuit in January 2020 and Jeep Canada filed a counter-suit in July.
After the collaboration with Geep Canada ended, the iPhone manufacturer appears to have discovered the alleged theft in late 2017 or early 2018.
Geep Canada merged with other companies to form Quantum Lifecycle Partners in September 2019.
Apple's lawsuit alleges that 531,966 iPhones were sent to Geep Canada for recycling between January 2015 and December 2017. In addition, 25,673 iPads and 19,277 Apple Watches were supplied.
Then Apple checked the Geep Canada warehouse and found that some of its devices are stocked with devices from other companies.
After discovering these devices, Apple verified the serial numbers of all devices sent to Geep Canada.
According to reports, Apple has found that approximately 18% of these devices (103,845) are still active over cellular networks.
Apple claims that the number of stolen devices will increase exponentially as devices that do not support (LTE) will not be shown.
Apple said: (Geep Canada) confirmed the disappearance of at least 5,336 kilograms of equipment from the warehouse (Geep Canada).
Apple aims to reap all the profits from the resale of these devices and $ 31 million ($ 22.7 million) in revenue.
According to court records, if Apple wins, Geep Canada wants all three employees to pay compensation and costs.
Geep Canada said it incurred significant business losses due to contract theft and contract termination by Apple.