Microsoft must face class action claims over alleged Xbox defect

March 18 Wed Mar 18, 2015 11:37am EDT

March 18 (Reuters) - A federal appeals court on Wednesday revived class-action allegations in which owners of Microsoft Corp Xbox 360 video game consoles sued the company over an alleged design defect that causes game discs to be gouged.

The 9th U.S. Circuit Court of Appeals said a lower court judge misapplied the law in striking the classwide allegations, and that this error was an abuse of discretion. It did not address whether the Xbox owners deserved to have their claims treated as a group. (Reporting by Jonathan Stempel in New York)