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Scrap Beat

by Scrap Magazine | Oct 13, 2020

Apple Sues Recycler for Allegedly Reselling Devices

Apple is suing GEEP Canada (Barrie, Ontario), a company that is now part of Quantum Lifecycle Partners (Toronto), for allegedly stealing and reselling at least 103,845 end-of-life electronic devices, including iPhones, iPads, and Apple Watches.

Apple hired the company to dismantle more than 575,000 devices between January 2015 and December 2017, The Verge reports, but Apple claims it discovered that 18% of those devices were still accessing the internet through cellular networks when it conducted an audit. In the lawsuit it filed in January, Apple is seeking at least $22.7 million from the company, according to The Verge.

GEEP Canada does not deny that the devices were stolen for resale, but it filed a countersuit in July claiming three “rogue” employees undertook the actions without the company’s knowledge, according to The Logic. Apple says the employees were members of GEEP’s senior management team.

Quantum Lifecycle Partners purchased the assets of GEEP Canada in October 2019, long after Apple conducted its audit, which occurred between 2017 and 2018, according to The Verge. In a statement it released Oct. 1, QLP clarified that it assumed the assets and certain liabilities of GEEP Canada, but that the Apple lawsuit was a liability it did not assume. It further noted that the lawsuit involves GEEP Canada but not Quantum Lifecycle Partners; that the GEEP Canada facility where the alleged activity took place has undergone significant changes in staffing, procedures, and systems since Quantum assumed its assets; and that QLP has never employed the workers named in the suit.

Apple stopped working with GEEP Canada after it conducted its audit, The Verge says. The case remains pending before the courts. Visit www.theverge.com/apple/2020/10/4/21499422/apple-sues-recycling-company-reselling-ipods-ipads-watches or quantumlifecycle.com/announcements/statement-from-quantum-lifecycle-partners-lp.

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