Somehow we missed this story about an alleged incident of sexual harassment at the Yale School of Drama. A female student was dismissed from the school in 2005 and subsequently filed a lawsuit citing retaliation after she reported sexual harassment in the context of an acting workshop in which the instructor asked students to simulate masturbation as part of a class exercise.
Yale settled for $10,000, the cost of the student's legal fees, and admitted no wrongdoing.
More details on the incident and the lawsuit can be found here.