For more the origin and history of the litigation, see here and here.

For more on the myths about Waldorf education, cultivated by "PLANS Inc.", specifically the "Anthroposophical world conspiracy myth" described in the press release below from PJI, see here.
 

"Parents Sue Sacramento City U.S.D. For Civil Rights Violation"

The suit alleges civil rights violations on behalf of concerned parents and taxpayers connected with the operation of Waldorf schools. The lawsuit is being sponsored by Pacific Justice Institute (PJI). Lead counsel for the Plaintiffs is PJI affiliated attorney Scott Kendall, of the law firm of McKinley & Smith.

Waldorf schools were founded in 1919 by Austrian born New-Age guru Rudolf Steiner. After Steiner’s attempt to found a spiritually-oriented party failed, he turned to education as a way to carry out his work by preparing souls for reincarnation as leaders in the next epic of history.

Both The Sacramento City Unified School District and Twin Ridges Elementary School District chose to continue to utilize this Anthroposophy-based curriculum after many complaints were made by parents in the community. Parents have yet to receive any notice by the School Districts as to the religious nature or basis of the Waldorf curriculum.

'Parents send their children to public schools with the understanding that the religious training of their children will not be circumvented,' said Brad Dacus, President of Pacific Justice Institute. 'We are confident that the religious practices and purpose of the Districts’ usage of Waldorf will validate this clear infringement.'

Pacific Justice Institute is an organization dedicated to the defense of religious freedom, parents’ rights and other basic constitutional civil liberties."

(emphasis added by AWE)

For more on PLANS' continued cultivation of this myth after the PJI press release in 1998, see here.