The 9th U.S. Circuit Court of Appeals in Seattle has overturned a 2012 decision by U.S. District Judge Ricardo Martinez in Seattle, which dismissed claims against Microsoft based on a 2009 ruling that was later overturned as well. The upshot is that the class action against Microsoft for knowingly selling defective consoles will continue.
There's a complete analysis of the XBox 360 disc scratching problem elsewhere on this site.
This is encouraging news, but the fight is far from over. Still, it's a step in the right direction. Even if nothing else ever comes out of this process, I'll be satisfied if Microsoft admits the defect and its subsequent failure to provide appropriate relief to affected customers.