According to The logic, is an electronic recycling company in Ontario sued by Apple, alleging that the company stole and sold iOS and watchOS devices instead of destroying them.
GEEP Canada is accused of reselling 1
Apple says that Barrie-based GEEP and members of the top management were aware of the activity. GEEP denies any wrongdoing and says when it discovered the resale ring, it closed it immediately.
In terms of damages, Apple is seeking $ 31 million from GEEP, plus the proceeds from the sale of iPhones, iPads and Apple Watches.
GEEP was hired by Apple in the fall of November 2014 to help recycle old products instead of being dumped.
Apple says it sent 531,966 iPhones, 25,673 iPads and 19,277 Apple Watches to GEEP to be recycled from early 2015 to late 2017, according to lawsuits, seen by The logic.
“At least 11,766 pounds of Apple devices left GEEP’s premises without being destroyed – a fact that GEEP itself confirmed. These misused devices were then sold at a significantly higher price than other recycled materials to downstream suppliers who refurbished and sold the devices to consumers, Apple’s case, filed in January, explains.
Apple discovered that GEEP moved devices to areas not under camera surveillance after checking the Ontario company’s inventory. The iPhone manufacturer found that 18% of the devices sent to GEEP were active on wireless transport networks.
While some devices such as Wi-Fi iPads do not appear in transport networks, something Apple says makes the total number of stolen products higher.
GEEP says the resale ring was due to three “junk” employees, Roger Micks, Edward Cooper and Steven White, who sold the units to Fu Yuan Yang at Whitby Recycling. Yang then sold these Apple devices to people in China.
GEEP’s third-party claim from July states that they want these employees, Yang and Whitby Recycling, to pay compensation if Apple wins, plus cover their attorneys’ fees.
The Ontario recycler says it has suffered “extensive business losses” due to the incident and the reputation, to team up with Apple to cancel the contract.