It looks like Microsoft is still going to face a class-action lawsuit filed by owners who claim their Xbox 360 console scratched their game discs. The 9th US Circuit Court of Appeals voted this week to deny Microsoft's request to rehear the case.
The original lawsuit was first filed way back in 2008. At the time, Microsoft claimed only a small fraction of Xbox 360 owners reported the scratches and that they were caused by their owners moving the console around. That lawsuit was dismissed in 2012 by U.S. District Judge Ricardo Martinez in Seattle, who ruled that there were not enough complaints to warrant a class-action lawsuit. However, in March 2015, the 9th U.S. Circuit Court of Appeals reversed Judge Martinez's ruling, claiming that he should have ruled based on if the console may have had a defect and, if so, did it violate its warranty.
This week's decision means that Microsoft will either have to deal with this in court, or settle with the plantiffs. In March, a Microsoft spokesperson said of this case, "We've won in the lower court previously and believe the facts are on our side."