NO! Frankly there are enough morons taking Google to court. Obviously you went against their TOS. They reserve the right to close any account at any time and keep your money. Those of us that advertise with adwords can thank them for that.... Going to court you will lose and spend way more than your $500 piddly dink you lost. Googles motto is 'don't be evil' obviously you did something evil in their eyes.
There is no such thing as bad publicity. If you want to crank your page hits through the roof, launch your small claim against google. Ensure word gets out. Media coverage will be everywhere. If you have a different revenue generator, it is probable to outweigh the minor cost of civil court.