The Microsoft Points lawsuit was a proposed class action filed by Samuel Lassoff in 2010—not a new or pending case. It alleged that Xbox Live customers lost points when digital downloads were incomplete or partial. On October 29, 2010, the district court dismissed the action with prejudice; that is a court ruling on this case, not a finding that Microsoft committed fraud.
What did the Microsoft Points lawsuit allege?
Microsoft Points were digital tokens customers used to buy content through Xbox Live Marketplace. A January 26, 2010 Engadget report said Lassoff alleged that Microsoft took or retained points when digital downloads were incomplete or partial and refused refunds. The complaint also reportedly challenged fixed purchase amounts that could leave a customer with a residual points balance.
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Coverage described the pleaded theories as fraud, breach of contract, negligence, unjust enrichment, and unfair business practices. Those were the plaintiff’s allegations; they are not proof that Microsoft committed fraud. The case concerned Microsoft Points used for Xbox Live purchases, not Microsoft Rewards.
Why did coverage call it a class action?
Engadget reported that the lawsuit’s Facebook page described it as a “class action on behalf of several million US customers exposed to Microsoft Point fraud.” That wording expressed the proposed class and the plaintiff’s allegation. It is not a judicial finding, and “several million” should not be treated as a verified count of affected customers.
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How did the case end?
The district court’s order, dated October 29, 2010, granted Microsoft’s motion to dismiss, denied Lassoff’s fourth motion to amend, and dismissed the action with prejudice. The order text is available through a Scribd-hosted copy, rather than an official court repository. The documented outcome establishes that this particular action was dismissed; it does not establish the truth of the complaint’s allegations.
Is there a new Microsoft Points lawsuit?
The case described in contemporaneous coverage is historical: it was filed in 2010 and dismissed that same year. The sources cited here do not establish a new or currently pending lawsuit over Microsoft Points. Do not confuse this case with a separate dispute or with Microsoft Rewards.
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What were Microsoft Points?
Microsoft Points were a digital currency for buying Xbox Live Marketplace content. Because points were sold in fixed amounts, a purchase could leave a customer with a balance too small for another item. That balance issue was distinct from the complaint’s allegation that points were charged for digital goods not provided after incomplete downloads. The Register’s January 27, 2010 report also covered the dispute and fixed-value point purchases.
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