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The Microsoft Points lawsuit behind headlines about alleged fraud was a proposed class action filed in 2010—not a new or pending case. Samuel Lassoff alleged that Xbox Live customers lost Microsoft Points when digital downloads were incomplete or partial. The district court dismissed the action with prejudice on October 29, 2010; the allegations were not findings that Microsoft committed fraud.
What the Microsoft Points lawsuit was about
Microsoft Points were digital tokens used to purchase content through Xbox Live Marketplace. Lassoff’s complaint concerned points allegedly charged for digital goods that customers did not receive after a download failed or completed only in part. Contemporary coverage also noted that fixed purchase amounts could leave a customer with a residual points balance.
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Engadget reported on January 26, 2010, 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 was promotional wording for the proposed class and its allegation—not a court finding or a verified statistic about how many customers were affected.
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Contemporary reports said Lassoff alleged Microsoft took or retained points for incomplete or partial downloads and refused refunds. The reported legal theories included fraud, breach of contract, negligence, unjust enrichment, and unfair business practices. These were claims made by the plaintiff; they should not be presented as proven misconduct or as a judicial conclusion that Microsoft’s points system was fraudulent.
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The dispute was about Microsoft Points used for Xbox Live purchases. It is distinct from Microsoft Rewards, a separate rewards program.
How the case ended
The district court’s order, dated October 29, 2010, granted Microsoft’s motion to dismiss, denied Lassoff’s fourth motion to amend the complaint, and dismissed the action with prejudice. In practical terms, the case identified here did not remain pending as a new lawsuit. The order text located for this account is hosted on Scribd rather than an official court repository, so readers seeking to rely on the ruling for legal work should check the official docket.
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- USE FOR GAMES & CONTENT — Redeem for thousands of digital XBOX games, from backward compatible classics to the latest new releases, plus DLC and in‑game currency.
- GAME PASS READY — Apply your balance toward XBOX Game Pass Ultimate to play new titles on day one* and access a library of hundreds of high‑quality console games.
- PRE‑ORDER & PRE‑INSTALL GAMES — Use your balance to pre‑order and pre‑download upcoming titles so you’re ready to play the moment they launch.
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What consumers should take away
The case is a historical dispute about alleged Xbox Live Marketplace charges for incomplete downloads. It does not establish that Microsoft committed fraud, nor does the phrase “several million” establish a verified count of affected customers. Readers should also avoid treating a report about this 2010 case as evidence of a newly filed class action.
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