Microsoft Disposes of Xbox Class Lawsuit by Forcing Arbitration

Xbox users agreed to arbitrate their claims individually when they clicked on Microsoft Corp.'s terms of use, so they can’t proceed with a proposed class suit over allegedly malfunctioning game controllers, a federal court in Washington state said in a recommended order.

An arbitration agreement in a physical product guide that came in the controller package is also effective because it provided sufficient notice to consumers, Magistrate Judge Mary Alice Theiler said April 2 for the U.S. District Court for the Western District of Washington.

Any further challenges, such as whether the agreements are unconscionable and whether they extend to ...