John Lewis is fighting against the termination by Ashland University. He hired his own lawyer, as reported in the Chronicle of Higher Education, and is now being represented by FIRE (great organization support Freedom and Individual Rights in Education). I couldn't check the Chronicle article (it's no longer available without a subscription) and it may be that FIRE was representing John Lewis during the proceedings.
The central issues, as discussed in the Chronicle article, is that the University hired John Lewis and took money from the Anthem Foundation for pursuing Objectivist research. The FIRE site includes new information. Here's the first article and here is a second. There is a page with documents related to the case here.
Here are some links to Objectivist commentary: Primacy of Awesome calls it a real threat from evangelicals and also comments on the FIRE update here. New Dark Ages at Ashland by Rule of Reason. Noodlefood calls the treatment insanely unjust. Ergo noted it. Gus Van Horn discusses it here and here and calls it possbily illegal.