Originally Published: August 30, 2011, on EGMNOW.COM

THE BUZZ: Customer Ryan Graves, citing improper charges to many of Microsoft’s Xbox Live Gold Member accounts, has filed a class-action lawsuit against the company for “an award of appropriate equitable relief.”

WHAT WE KNOW: Graves claims that he let his Xbox Live Gold Membership expire in January; in March, he renewed his subscription with a different debit card. When he received his bank statements the following month, he found that Microsoft had double-charged him for Xbox Live. When he called Microsoft to have one of the charges removed, believing it to be a mistake, he was told that both charges were legitimate. One was for his new subscription, while the other was for the original he’d let expire—and Microsoft refused him a refund. Graves’ class-action suit demands retribution for himself and others who’ve been double-charged, and it further states that Microsoft is in breach of contract with its users and in violation of the Electronic Funds Transfer Act.

EGM’S TAKE: There’s no way to know exactly how many customers have been affected beyond Graves—or who may be joining him in this lawsuit. But if Microsoft’s forced to refund money to these individuals at $60 a person, with over 30 million Xbox Live users as of January 2011, it would only take 0.1% of the current Xbox Live audience to cost Microsoft millions—never mind the legal fees.

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