As Howard Friedman notes at his indispensable Religion Clause blog, the ACLU's case against the Tarek ibn Ziyad Academy, a Muslim charter school in Minnesota, has survived a motion to dismiss. The court refused to grant qualified immunity to school officials and refused to allow the families of several students to intervene in the suit.
This is an important case that could help define a now-fuzzy line distinguishing between acceptable religious accommodation by schools and religious establishment by schools.