You obviously went to a bad Catholic school; I'm not denying that. The incidents you mentioned in your experience, if true, are horrendous, unchristian, and should be condemned. But you are making a lot of assumptions in this case, based solely on biased accounts by the plaintiffs, who obviously have an agenda to promote. You are also making up facts in that you contend the girls were publicly humiliated when the only involved people seem to be the girls, the school administration, and the girls' parents. You also say that the principal is picking on the girls for no reason. You claim to have knowledge about the culture of the school when you obviouly don't. Very few facts are known at this point, so look at what we do have.
Notice the demands in the lawsuit: unspecified damages (money), RE-ENROLLMENT AT THE SCHOOL, and an injunction barring the school from excluding gays and lesbians. Considering the second, don't you think it strange that the girls would want to remain in a supposedly hostile environment? But the last seems to expose the real objective, to be lesbians in an organization where such behavior and worldview is condemned with the purpose to either destroy the organization from within or to set a precedent in which no private religious organization can any longer have any say in establishing its own moral values.
A. The girls must have serious and credible allegations if a lawyer was willing to take their case. I believe that one of the following probably happened either the principal overstepped his bounds and basically harassed the two girls, there was no substantial evidence presented/ hearing help, or the punishment would not have been given or as harsh if the girls were circulating risque pictures of them with their boyfriends. Any of those situations seem plausible to me.
B. There's been enough incidents over the past two years concerning private schools that I tend to side with the students in these cases. And it's not just for "so-called" liberal causes; there was the pro-life girl who got expelled from her Catholic school for no reason in the fall.
C. I think that religious institutions should in general stay away from teaching children the three Rs and instead focus on teaching all their parishioners how to live moral lives.