A federal appeals court on Wednesday revived a proposed class-action lawsuit against Microsoft that claims the Xbox 360 damages gaming discs, rendering them unplayable.
The 9th US Circuit Court of Appeals said a lower court had misconstrued the court's own precedent when it ruled that Xbox owners in the US could not collectively sue Microsoft for damages.
".... [A]lthough individual factors may affect the timing and extent of the disc scratching, they do not affect whether the Xboxes were sold with a defective disc system. Plaintiffs contend that (1) whether the Xbox is defectively designed and (2) whether such design defect breaches an express or an implied warranty are both issues capable of common proof. We agree," the San Francisco-based court ruled (PDF).