The court battle against Microsoft over a reported Xbox 360 design problem that causes disc-scratching is moving forward this week. Ars Technica reports that the 9th US Circuit Court of Appeals on Monday set the table for Microsoft to potentially eventually face a class-action lawsuit over the issues.

Judges Johnnie B. Rawlinson and Carlos T. Bea voted to deny Microsoft’s petition for rehear the case with a larger group of judges. This is called an En Banc Rehearing. According to the decision, “No further petitions for rehearing or rehearing en banc will be accepted.”

This week’s proceedings follow another court decision in March, when judges ruled that the disc-scratching case could move forward as a class-action lawsuit.

The case, which dates back to 2007, claims that Microsoft “negligently designed and manufactured” the console. Plaintiffs in this case allege that the Xbox 360 optical disc drive is “unable to withstand even the smallest of vibrations, and that during normal game playing conditions discs spin out of control and crash into internal console components, resulting in scratched discs that are rendered permanently unplayable.”

Microsoft, on the other hand, argues that the vast majority of the Xbox 360 systems don’t have any problems with scratched discs. In a statement, Microsoft said only 0.4 percent of systems are affected by disc-scratching. The company further argues that the main cause of gouged discs is actually consumer misuse, not a product defect.

As of June 2014, Microsoft had sold more than 84 million Xbox 360s worldwide since the console originally launched in November 2005.

You can view the full court statement through this PDF.

This is not the first time Microsoft has faced legal action over reported problems with Xbox 360 hardware. Following the system’s release in 2005, a man sued Microsoft over claims that the system had a design flaw that made it overheat. Microsoft has also faced legal battles concerning the Xbox 360’s infamous “Red Ring of Death” hardware issue. This problem cost Microsoft more than $1 billion.

Looking to the new generation, Microsoft in summer 2013 updated the Xbox One terms of service to block class-action lawsuits against the company. Microsoft is not the only major game maker to forbid class-action lawsuits. Sony’s PlayStation terms of service restrict gamers from suing the company en masse, while Valve also blocks class-action suits.