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It said administrators were not guilty of "deliberate indifference".
Patricia Gray, an assistant superintendent in the San Francisco Unified School District, said administrators had persevered.
He said administrators hoped some of the affected staff could move to other stores.
If anything, they said, administrators are eager to promote members of ethnic groups.
Lynn Setzer, a school district spokeswoman, said administrators had been completely objective in their evaluation of inBloom.
Mr. Kessler said administrators had not backed up agents who tried to flag disciplinary and behavior problems.
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"This will go a long way towards plugging the club's financial gap," said administrator Trevor Birch.
"We made a pledge that if fans backed us by buying season tickets, we would not sell players to raise short-term cash," said administrator Trevor Birch.
Paul Hill, founder for the Center for Reinventing Public Education, says administrators should embrace testing, but avoid directly linking scores to teacher success or failure.
The students, Matthew Chayes and Anja Vojvodic, say administrators at Francis Lewis High School are restricting their freedom of speech.
About 20 percent of Ross's first semester students won't make it to graduation, say administrators, an exceptionally high rate of attrition.
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CEO of Professional Science Editing for Scientists @ prosciediting.com