If David installed the dnet client without permission then he was in the wrong. I don't think anyone is debating that, even David. However, the state of GA is also in the wrong here. Rather than fix the problem in the quickest and most cost effective manner they waste taxpayer's money with a lawsuit.
Here's how it should've happened... The dnet client is found. David is questioned about it. David admits he installed it. David is told that the client is not authorized on the machines and needs to be removed. David removes the clients (paid or unpaid - it doesn't matter). Then, if the school feels it's necessary they dismiss David. How much would that've cost?
Instead... Dnet client is found. David is fired. A costly and totally unnecessary investigation begins. How many PC's are we talking about anyway? I've heard numbers of 300-600. I'll bet they could all be reloaded from scratch for the price this trial is going to cost. Another fine example of our red-tape laden government in action.