Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion

    Back-to-school 2026/27: Apple vs. Google

    Certification Scorecard — Week of May 11, 2026

    May pricing bullish for most bales

    May pricing bullish for most bales

    PP most likely plastic to shift in 2026

    PP most likely plastic to shift in 2026

    CompuCycle brings e-plastic recycling upgrade online

    Quantum expands e-plastics recovery

    Certification Scorecard — Week of May 4, 2026

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
      • All Topics
Subscribe
No Result
View All Result
Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion

    Back-to-school 2026/27: Apple vs. Google

    Certification Scorecard — Week of May 11, 2026

    May pricing bullish for most bales

    May pricing bullish for most bales

    PP most likely plastic to shift in 2026

    PP most likely plastic to shift in 2026

    CompuCycle brings e-plastic recycling upgrade online

    Quantum expands e-plastics recovery

    Certification Scorecard — Week of May 4, 2026

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
      • All Topics
Subscribe
No Result
View All Result
Resource Recycling
No Result
View All Result
Home E-Scrap

Lawsuit claims supplier misrepresented device quality

Colin StaubbyColin Staub
February 8, 2018
in E-Scrap
courtroom

Credit: sirtravelalot/Shutterstock

Credit: sirtravelalot/Shutterstock

An e-scrap company is accusing a Sprint subsidiary of failing to follow through on a supplier contract. The processor is asking for roughly $1.7 million in damages.

Los Angeles-headquartered IT Asset Partners (ITAP) filed suit in December against Sprint/United Management Company, a subsidiary of Sprint Corporation. The complaint was filed Dec. 12 in U.S. District Court for the District of Kansas.

The allegations stem from several business transactions in early 2017. The suit claims two counts of breach of contract, one for Sprint allegedly shipping fewer devices than ITAP paid for and another for misrepresenting the cosmetic grade of purchased devices. ITAP also alleges one count of negligent misrepresentation, also based on alleged cosmetic grade discrepancies.

The asset recovery company seeks a judgment of more than $1.7 million in damages, plus interest.

Sprint has not yet filed a response. The deadline to respond was initially in early January but has been extended to early March. A Sprint spokesperson told E-Scrap News the company is aware of the lawsuit and will file a response with the court but declined to comment further. The legal action was first reported in December by the Kansas City Business Journal.

Device count and quality allegations

The disputes arose after ITAP in early 2017 submitted and won a number of bids to purchase phones from Sprint.

ITAP claims it was shorted nearly 700 devices in early 2017 on orders that should have totaled 3,900 used phones. ITAP disposes the unused portions of the devices after recovering what it can. The company requested Sprint issue a $127,416 refund but alleges Sprint refused.

ITAP also expresses concern in the filing that it could be held liable for any data breach from the devices it never received, because the contract between the companies stipulates it is responsible for ensuring data security on the devices it ordered.

In a dispute stemming from separate phone orders, ITAP also claims Sprint misrepresented the quality of product it was sending. Under the contract, each load of devices would be assigned a letter grade for quality. An A grade indicated devices that were “like new.” At the other end of the spectrum, an E grade indicates “heavy wear and tear with cracked glass and damaged LCD.”

The asset recovery company “had no interest in purchasing any goods with an ‘E’ cosmetic grade (or worse), because those goods could not be used” in ITAP’s recovery process, according to the complaint.

In late February, ITAP placed orders for a combined 2,621 devices, including Samsung Galaxy S7 and S7 Edge units described as “D” grade, meaning they had heavy wear and tear with cracked glass, but not a damaged LCD. However, ITAP claims, they arrived in much worse condition, what ITAP describes as “E” grade. The devices were “burned, bent and had damaged LCDs,” according to ITAP.

”In fact, some of the ‘phones’ received by Plaintiff were nothing more than the back cover of the phone and the actual phone was not included in the shipment Plaintiff received,” ITAP’s attorneys wrote.

In March, ITAP placed orders for 1,686 Samsung Note 5 and S6 Edge devices and separate orders for 2,510 Samsung Note 5, S6 Edge+ and S7 Edge units. These units ranged in stated quality from “B” to “D.” But ITAP alleges they were in worse shape than Sprint had described, with burned, bent and damaged LCDs.

ITAP tried to return the devices received in the orders that led to quality disputes. It sought to have its $806,090 refunded, but the company claims Sprint refused to accept the return.

ITAP was in the news last summer when its founder and former CEO, Eric Lundgren, plead guilty to criminal copyright infringement and conspiracy to traffic in counterfeit goods. The case centered on unauthorized Microsoft Windows reinstallation CDs Lundgren was involved in supplying for use in refurbished Dell computers. Lundgren, who stepped down as CEO last summer, is currently appealing his prison sentence.

 

Tags: LegalMobile Devices

TweetShare
Colin Staub

Colin Staub

Colin Staub was a reporter and associate editor at Resource Recycling until August 2025.

Related Posts

AT&T, Compudopt expand e-recycling program

AT&T, Compudopt expand e-recycling program

byAntoinette Smith
April 23, 2026

The communications giant will have more than 200 retail collection points, and the Texas nonprofit will process and distribute old...

In My Opinion: Bring consumer trust to refurb markets

Record $6.4B in trade-ins as older phones drive market

byScott Snowden
March 23, 2026

Device protection and services firm Assurant showed that iPhones were traded in at an average 3.8 years and Androids reached...

ExxonMobil files suit against California AG for defamation

Legal issues continue for canceled Pennsylvania project 

byAntoinette Smith
March 13, 2026

A Pennsylvania engineering consultancy is seeking to impose sanctions on chemical recycler Encina for work relating to a project in...

ERI sues Revivn alleging raid on staff and trade secrets

ERI sues Revivn alleging raid on staff and trade secrets

byScott Snowden
March 10, 2026

ERI has filed a lawsuit against Revivn in New York Supreme Court alleging trade secret theft and a coordinated effort...

Assurant reports fast expansion of reverse logistics

byScott Snowden
February 18, 2026

The company reported a 12% rise in Q4 profit as device trade-in and reverse logistics work expanded.

Texas sues over dumped wind turbine blades

Texas sues over dumped wind turbine blades

byScott Snowden
February 10, 2026

The state attorney general sued Global Fiberglass Solutions over alleged illegal storage and disposal of all turbine blades at two...

Load More
Next Post
CRTs collected for recycling

Evolving stream spurs California CRT rate proposal

More Posts

Lawsuits hover days after SB 54 approval

Lawsuits hover days after SB 54 approval

May 6, 2026

Origin Materials to shut down, sell PET cap design

May 6, 2026
New version of California EPR regulations released

CalRecycle approves SB 54 regulations

May 2, 2026
Orange County landfill fees to spike 53%

Orange County landfill fees to spike 53%

May 11, 2026
Extruder pushes out natural HDPE pellets at KW Plastics in Troy, Alabama.

Rare look inside the world’s largest plastics recycler

May 13, 2026
Industry descends on DC to fight for PET

Industry descends on DC to fight for PET

May 13, 2026

PP bales rise, paper grades edge higher

May 11, 2026
APR, industry groups testify on overcapacity

APR, industry groups testify on overcapacity

May 8, 2026
Electronics are the fire risk battery EPR keeps missing

Electronics are the fire risk battery EPR keeps missing

May 4, 2026
Canadian city walks back fee on paper coffee cups

Recycling access for paper cups hits 20% of US

May 11, 2026
Load More

About & Publications

About Us

Staff

Archive

Magazine

Work With Us

Advertise
Jobs
Contact
Terms and Privacy

Newsletter

Get the latest recycling news and analysis delivered to your inbox every week. Stay ahead on industry trends, policy updates, and insights from programs, processors, and innovators.

Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • The Latest
  • Analysis
  • Recycling
  • E-Scrap
  • Plastics
  • Policy Now
  • Conferences
    • E-Scrap Conference
    • Plastics Recycling Conference
    • Resource Recycling Conference
    • Textiles Recovery Summit
  • Magazine
  • About Us
  • Advertise
  • Archive
  • Jobs
  • Staff
Subscribe
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.