Graphic details aside, the allegations, if true, would pose serious liability on the school district as well as the individuals accused. Schools, especially colleges, have been found liable for damages in hazing incidents. It would be prudent for any organization that involves its employees with children develop clear enforced guidelines on the extent and quantity of contact allowed as well as the nature of the supervision.
Look for many schools to take note of this lawsuit and promulgate specific rules if they have not done so already.