Gamespot is reporting that a rumour that's been floating around has, for once, turned out to be true. Microsoft has been sued for breach of contract and negligence in connection to the Xbox Live Fall Update. From the article: " Stating that the affected consumers number in 'at least the thousands,' the suit contends that Microsoft is refusing to repair or replace the broken systems unless the users pay 'up to $140' to ship it back to the company. The plaintiff is demanding that Microsoft pay at least $5 million in damages for breach of contract to those affected by the Fall Update problems, and an additional amount of at least $5 million in damages for an unfair or deceptive act under the CPA. Should Microsoft argue that it had no agreement to breach with the affected users, then the plaintiff contends Microsoft was negligent, and should be made to pay at least $5 million in damages." It should be noted that Microsoft has responded by saying it has offered to completely cover the cost of systems affected by the update, including shipping.

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