I don't know how much damage Microsoft can do since he is only 17, and I don't know if his parents can be held liable.
I remember when I screwed eFront Media back in 2000 they tried to get me on breach of NDA but I was under 18 and they never had my parents cosign my contract so basically it worked out I heard that I would be free and clear.
Also this is Canadian court, there is never large settlements. They are usually resonable
