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I have no knowledge of the facts of this case beyond the allegations in this story, but I do believe you are going to see increasing numbers of lawsuits of this kind in the coming years.
Here is what was said about Cody Silk in BGSU's release when he signed his LOI.
Cody Silk, OL, 6-4, 275, Sterling Heights, Mich. (Warren De La Salle)
High School: Currently attends Warren De La Salle High School ... coached by Paul Verska ... earned All-Catholic League Honors ... ranked as the No. 47 player in the state of Michigan by the Detroit Free Press.
That was in February 2010. In March of 2011, after his redshirt year, we were reporting that he was no longer on the roster. He was a Clawson recruit and not a Brandon holdover.
Because he is suing the State of Ohio (BGSU is a state University), the case goes to the Ohio Court of Claims.
UPDATE: The Sentinel has some more details and timelines on this issue.
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