They did a similar thing to me. They even added on fraud during my CC dispute as the cherry on the top. But I don't have a large social media following so I'm just out my $700.
Simply going through the process of a small courts claim will likely get your money back. They will not send a lawyer to the small claims court hearing and they will settle. Even if you make a bunch of mistakes with your small claims process, the court will never review it before the hearing. Newegg will not have their lawyers spend time dealing with your mistakes.
Send a demand letter and if they don't respond, do the small claims court paper work. The hardest part is serving Newegg a notice. You can pay a professional to serve the paperwork. If you're willing to stick it to them, you will very likely see your $700 + fees. Most people won't do it because they feel intimidated or can't be bothered with the work.
I did and Newegg committed fraud during the process. Newegg responded to my dispute saying they had no record of me returning the item despite tracking and e-mail confirmation that they received it.
The credit card company will accept your paper trail. They can check with the shipping company. The fact they lied about it should make it even more clear-cut.
