The matter seems to have been finally resolved, and resolved right (though the complaint should have been thrown out at the very beginning, rather than leading to a finding of racial harassment). Here's the letter from the Indiana University - Purdue University Indianapolis Chancellor:

I can candidly say that we regret this situation took place and that IUPUI takes this matter very seriously. IUPUI is committed to ensuring that its future approach to such matters is consistent with and affirms the long-standing commitment of this campus to the principles of freedom of expression, lifelong learning, and respect for the rights of all members of the IUPUI community. In the near future, IUPUI will be reexamining the campuswide affirmative action processes and procedures relating to internal complaints.

Thanks to the Foundation for Individual Rights in Education and the ACLU of Indiana for their work on this case.