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On November 22, 2004, Stephen Williams filed suit in federal district court against the Cupertino Union School District, alleging violations of his rights under the First Amendment. Williams has taught the fifth grade at Stevens Creek Elementary School for six years and describes himself as an "orthodox Christian."

With the assistance of the Alliance Defense Fund, Williams alleged that the school had violated his rights when principal Patricia Vidmar began to screen the handouts that he intended to give to his fifth-grade class during lessons on the history of the United States. Media coverage indicates that this was probably done in response to complaints by Williams's students (and their parents) that he was talking about God all the time.

The handouts included quotations from the Declaration of Independence, various state constitutions, George Washington's journal, John Adams's diary, and William Penn's writings. The quotations appear to have been selected to highlight the use of religious references by the Founding Fathers of the United States and other earlier leaders. There was also a handout that included quotations from various U.S. presidents and Jesus Christ on why it is good to read the Bible.

However, the Associated Press reported that Williams was alleging that he was being prevented from teaching the Declaration of Independence. Conservative websites and such commentators as Alan Keyes played up the story as a blatant instance of hostility to religion. These interpretations were based on the Alliance Defense Fund press release. As Media Matters for America explained:

Even the lawsuit ... acknowledged that the school has not imposed an outright prohibition on the mention of God or the discussion of religious beliefs in the classroom. The lawsuit recognized that "other teachers are permitted to show films and distribute handouts containing references to God," and that Williams had been permitted to teach "lessons on the origins of religious holidays" during that school year and had provided handouts relating to religion in the past "without any problems."

Despite that acknowledgement, an Alliance Defense Fund press release about the lawsuit was headlined "Declaration of Independence Banned from Classroom".

The full text of the Declaration of Independence (like that of the U.S. Constitution) already appears in all California social studies public school textbooks, including the one used at Stevens Creek.

Because of the play given to the distorted version of the story, the school, the school district, and Williams were buffeted by a wave of email, faxes, phone calls, and postal mail. Some of the messages received by the school were threatening in nature, so the school's security officer had to patrol the school more aggressively during the month of December 2004.

The City of Cupertino also received some messages from out-of-state people who do not understand that California school districts are funded and regulated by the state Department of Education.

On December 9, 2004, Fox News's Hannity and Colmes program visited Flint Center and filmed a show there with Williams and his attorney. The Center was packed by a crowd of more than 3,000.

In April 2005, Federal Judge James Ware disallowed three of the four claims, allowing the fourth to proceed. A hearing date was set for October.

In August 2005, Williams dropped the lawsuit, preferring to settle out of court. Per the settlement, the school made several policy statements which contradicted the reasoning previously given for the school's actions, and no payment was required between the parties. Several days later Williams resigned from the school district. Principal Vidmar, a defendant in the original suit, continued in her position as Principal of Stevens Creek Elementary.

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