Microsoft Sued Over Unused Xbox Live Points

Digital Battle has recently reported that Microsoft has been sued over their alleged fraudulent sale/use of Xbox Live points.

The controversy stems over the fact that unused Microsoft points cannot be refunded - the user is essentially forced to buy something or lose the points, which the group says violates the law.

It will be interesting to see how Microsoft reacts to this lawsuit.  Will they fight it?  Pay off the accusers?  Free Xbox Live points for all?