It was discovered that the laptops issued by the high school contained software allowing administrators to covertly activate the on-board webcam. The plaintiff, Blake J. Robbins, was disciplined by the school for "improper behavior in his home." The evidence of said impropriety was brought forth by the school vice principal, who displayed a photo of Robbins taken by the laptop's webcam.
TechDirt indicates a recent episode of PBS Frontline that contains video footage of an official at another school using a remote desktop application to spy on students in a similar way. He says almost proudly, "They don't even realize we're watching." In other words, school-sponsored surveillance might not even be uncommon.
You can read the full text of the case filing in the PA case: Robbins vs. Lower Merion School District (PDF). What do you think about schools spying on their students? As in other realms where this issue is becoming more prevalent, is the benefit of giving kids access to laptops worth the price of their privacy?