Expedia (Expedia Malaysia) Delays resolution of case, not provide services, no refund Internet

I booked flight trough Expedia web site. THe flight was booked from Malaysia Arline, route Kuala Lumpur - Bangkok. After one hour of booking (and charging my credit card), I had e-mail from Expedia, about my booking cancelled by airline.

Trying to contact Expedia is useless - they not allow any changes online. only with speaking consultants. All my calls was routed somewhere to nowhere in India, where consultants, spoke broken English and not helpfyl at last. After several hours trying to contact them, I was booked flight from airline directly. They have seats and booking was smart.

3 days later I board flight and while at airport, had thorough investigation with airline stuff.

1. Booking was cancelled either payment not received or ticket cost slightly changed.
2. Expedia try to book Business class ticket without my permission on this short 1 hour flight, and new booking was active at the time I come to airport.
3. Airline cancels business class booking, and provide all original documents regarding issue. I (not Expedia) do all investigation and sent documents to Expedia.
4. Since 19 nov 2012 Expedia do loop talks about nothing and not refund anything. 
5. Airline confirm to me, they will not able to refund anything to me directly, because this is travel agent (Expedia) holds my money. And this right.

Conclusion: Expedia steals money and not provide services. 

Action: Opening lawsuit against (amount of loss is not important), and will enforce law against them.