I doubt this lawsuit will go anywhere, but there's some serious overreaction here
(Articles are here and here)

I might be missing several details here, because this thing seems like a sprawling mess that's only partially explained in the articles, but here goes:

Francesca Lia Block is a rather well-known YA author whose works frequently touch on things like HIV, homosexuality, premarital sex and pregnancy, and all sorts of other scandalous things that children should OMG never be exposed to.

There is a group called the Christian Civil Liberties Union that has decided that her books are something that no one should be exposed to. Earlier in the year, concerned citizens in the town of West Bend, WI petitioned their local library to separate out all teen books with "explicit" material and keep them away from... teenagers. When the library's trustees flat out denied the petition (and four of them may have lost their appointments for failure to comply with it), the CCLU came and filed suit.

Four elderly gentlemen were exposed to Block's book Baby Be-Bop, which is the story of a gay teen who gets beaten up by a homophobic gang. This exposure was so damaging that they are requesting $120,000 in damages ($30,000/person). This book, which contains several racial and gay slurs, hurt them so much that they want to have it declared obscene and they call it a hate crime.

They are also asking for the mayor's resignation, because she allowed the public to be exposed to the book (and I'm sure the fact that she supported bringing the fired trustees back has nothing to do with it it all).

And they want the library to publicly burn the book.

Cheap publicity stunt, yes, but they're calling for a library to burn books. D: