Imagine that you buy a book (the old-fashioned type made of paper) at a brick and mortar bookstore.
Some time later, the store gets to know that the book was not duely licenced and is therefore considered counterfeit.
A store clerk breaks into your appartment, gets the book from your bookshelf, puts the price you paid in cash onto your table and leaves with the book.
That's what happened on the Kindle.
In the non-virtual world, a store that sold counterfeit goods has to pay damages to the rightholder, but cannot claim the goods back from his customers. It's the customers who have the right to get their money back from the store, but it's their decision.
Oh, for the days of physicallity...