According to a report from InformationWeek, Georgia resident Francisco Garcia has filed suit against Microsoft for what he claims was a "fraudulently induced... contractual relationship for Xbox Live services." The problem? Seems that Garcia's underage son used his debit card to sign up for an Xbox Live account. When the yearly auto-rebilling hit, it sent daddy Garcia's account into overdraft, netting him a $US 35 overdraft penalty. Serious business.
The report doesn't specify how much Garcia is seeking but mentions that Microsoft is attempting to have the case thrown out of court.
Microsoft Hit With Class Action Suit Over Xbox Live Fees [Information Week - thanks, coalhalo!]