All these posts, and so few voices of reason. My general rule of thumb is that if a story sounds ludicrous, then generally it is. TDK, you hit the nail on the head.
Speaking as a parent at this school, this is a ridiculuos story that boils down to some hotheaded parents unwilling to believe that that their daughter is somewhat of a bully. The so-called "hug" was the tail end of a shoving incident where she grabbed a child half her size and lifted her off the ground. There were several students invloved in the rough play, all were reported to the teacher, and all were asked to write notes about their behavior. These parents were the only ones of the five to think this wa a media-worthy event. Speak to any other parent at this school, and they will tell you that they are horrified that this family has brought so much bad press to our little school simply because they were unable to accept the fact that their daughter had been disciplined.
They probably do have no choice but to pull their daughter from the school now... if I were them, I wouldn't want to show my face.
Back in my day, if I bought a note like that home, my parents would take away a priveledge, or send me to my room. They definitely wouldn't have called CNN.