The school overreacted, but the current antiterror laws require schools to overreact every time something like this happens.
Then again his father is a former Sudanese politician and they know very well how to manipulate the media. They got a massive donation drive directed at them right after the news broke about this "inventor" who stuffed an old VCR into a suitcase and started plugging it into AC during class, despite instruction otherwise. His older sister apparently had something similar happen when she was in school, lending credibility to his father being the mastermind.
And suing a school district for more money than it probably gets in an entire year, which will only result in teachers getting laid off, getting docked wages and ultimately end up in a poorer education for the kids in said school district...
And the school acted exactly like they were legally required to act under the Patriot Act and friends, so I'm not sure what gives.