A rabbi from the Slonim hasidic sect who was affiliated with the haredi girl's school was allegedly accused of sexually molesting kids. In reaction, Slonim hasidim forced the accusers children and their friends out of the school proper and into segregated classes. The accusers were overwhelmingly Sefardi ba'al teshuvas.
Israel's Channel 2 is reporting that the reason Sefardi girls were separated from Ashkenazi girls at a haredi school in Emmanuel is that a Slonim hasidic rabbi affiliated with the school was allegedly sexually abusing kids. Slonim forced the school to push out the BTs – mostly Sefardim – who complained about the abuse.
The case rocked Israel, and it led to a massive haredi demonstration in support of Slonim hasidim who would not heed a court order to desegregate. The demonstration was backed by all major haredi rabbis.
[Hat Tip: Joel Katz.]