The Lower Merian School District settled out of court. The district handed out some laptops to students that had tracking software with the ability to activate and take pictures via the webcam. This was only to be used if the laptop was stolen. The district claims it did no wrong, while a student and his parents say the school was spying on the student at home via the webcam, The settlement gives the primary student involved a comfortable little $175k trust fund and much of the rest of the $610k payout going to legal council. The district still claims it did no wrong, but says to have settled in the interest of all involved, saving far more money than a court case may have cost.
The biggest Big Brother of them all, the FBI, completed their investigation and are not following through with any charges against the school district. If they did that would make us pull out the ol' pot calling the kettle black zing. Oops, there it is anyway. Source