When Microsoft released the Fall Dashboard Update in 2006 for the Xbox 360, users expected new features. What no one expected was that the update crashed consoles, rendering them mostly useless. Microsoft quickly acknowledged and fixed the problem, and advised those who had bricked consoles to contact Xbox tech support for further instruction.
More than a month after Microsoft's dangerous Dashboard, Californian man Kevin Ray filed a class action lawsuit against Microsoft seeking $5 million in damages in addition to free repairs after his own Xbox 360 was disabled by the update. According to Todd Bishop's Microsoft Blog, Microsoft and Kevin Ray have settled the case under confidential terms. The case was settled as in individual action, rather than a class action.
The settlement of the lawsuit is likely affected by Microsoft's several revisions to its Xbox 360 warranty. In December 2006, Microsoft extended its general console warranty to one year – up from its previous 90-day coverage. In April 2007, the company decided to bulk up its warranty services by offering free shipping for consoles in and out of warranty.
News source: dailytech.com