Yes, but a lawsuit for psychological distress is a little bit of a stretch I would think.

At 12-years-old, it is a perfect opportunity to take this "distress" and turn it into an educational experience, provided the parents have an open mind.

A complaint to the board? Sure. Suspension of the teacher? Possibly. A lawsuit? Reveals to the world that once again the "American Way" is to sue what you don't like.