Microsoft sues DHL after train dumps 21,600 Xboxes

Microsoft is suing cargo-delivery service DHL Express for allegedly losing 21,600 Xbox game consoles because of a Texas train derailment.

Microsoft is suing US-based cargo-delivery service DHL Express for allegedly losing 21,600 Xbox game consoles because of a train derailment in Texas, according to court documents.

In a complaint filed in the US District Court for the Western District of Washington in Seattle, Microsoft said it is seeking more than US$2 million in damages from DHL for two containers of Xbox consoles that sustained "impact damage, wetting, pilfering and shortage" after a derailment near Duke, Texas.

The Xboxes were en route from a Microsoft office in McAllen, Texas, to Long Beach, California, for eventual delivery to Hong Kong at the time of the loss, which occurred on Oct. 13, 2007, according to court papers. Flextronics Industrial in Hong Kong was the intended recipient.

Microsoft claims that DHL has refused to compensate it for the loss, even though the delivery service "negligently breached its duties as a common carrier, handler, bailee, warehouseman, agent, or in other capabilities," according to the court papers.

DHL could not be reached for comment Friday.

Microsoft's Xbox game consoles also were the center of a recent controversy in Colorado, where a man was indicted on Sept. 23 for illegally reselling both Xbox 360 and Sony Playstation consoles, and returning inoperable consoles to retail and online outlets for money as if he had purchased them legally.

According to the US State Attorney's Office in the District of Colorado, 27-year-old Yewchoo Ng of Boulder purchased the consoles at Target, Amazon.com, Buy.com, Best Buy, Circuit City, Sears and Wal-mart using several credit cards. He took the consoles out of the boxes, removed the serial numbers, put those numbers on older, inoperable consoles, and returned those consoles to the retail outlets, according to the state attorney's office.

The retail and online outlets lost $182,001 as a result of the scam, the office said. Ng also sold the new consoles online via e-Bay and other auction and shopping sites for his own personal profit.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Elizabeth Montalbano

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?