Help--Railroaded by school

My daughter’s high school just took away her 504 after 9 years, stating they don’t believe she has a disability (this based on their observations of her, in class, for 1.5 hours per day for the some 20 days since school started) and therefore doesn’t qualify for the 504 she’s had since being diagnosed with ADHD in 2nd grade.
When I first brought the 504 to the school this year from the previous school (I had removed her from this same school last year due to the teachers ignoring the 504 completely during her 9th grade year (their excuse was that they “didn’t have enough student assistants in the office to pass them out to all the teachers”) and at that time the guidance counselor stated that they “may be able to just dispense with the 504 and just get all the teachers to agree to do certain things” and also proudly proclaimed that they “had been able to whittle their 504’s from 55 down to 5” (hello—RED FLAG!!)
I stated that I would NOT be relinquishing my child’s 504 because it offered protections that extend beyond this school or even secondary education in general. A few days later my child said one of her teachers gave other students in the class hard copies of notes (one of her specified 504 accommodations) but not her. I phoned the district office 504 compliance officer and said that my child had a valid 504 and if they didn’t comply I would file due process.
They responded by giving me a 3-day notice of “team meeting” (not nearly enough time, as all of you know, to get any advocate, private counselor, or psychologist to be free to attend) and at the meeting they each in turn summarily denied the fact that she has any disability because, as they stated, “she can walk, talk, feed herself, attend to her own hygiene needs” and because because she doesn’t have any difficulties with “any major life activities” (which according to them are walking, talking, feeding one’s self, and toileting one’s self). The guidance counselor stated that “working” as stated in the qualification, meant “sitting in a chair doing work” and that since she could sit upright, did not apply.
Repeatedly I informed them that ADHD is a “neurological condition” under DSM-IV and a “disabling condition” under section 504 to the extent that it interferes with learning which IS a major life activity.
They disagreed.
I told them they were violating federal law, because my child’s ADHD affects her organizational skills, time management skills, impulse control, and she also has a mild learning disability (processing disorder) which affects her expressive communication fluency, word retrieval skills, and difficulty in copying (ie) from board/overhead to paper.
They did not care.
They took a “vote” as to (1) whether or not she had neurological condition; they all decided she did not (I was the only ‘yes’ vote). They even tried to get my child to admit she didn’t suffer any effects, but she couldn’t even understand their questions!!!
Also as to (2) whether or not she has a disability (surprise, surprise, they all said “no”).
They state that their “observations” combined with the fact that she is achieving at an “average” level (grades: C, F, C, B) shows she does not need services.
And with that, they promptly called the meeting over, and she now has no rights.
Why is it a requirement that for children to receive special education services or accommodations they MUST necessarily be failing? Why do schools insist in holding our students to “at” or “below” average levels? Many of our children are quite intelligent, but giving them accommodations to allow them to actually “compete” to attain the levels to which they otherwise might rise? No Way. According to the schools, unless they’re failing in every subject, they just don’t need services.
No wonder so many of our kids become suicidal. They’re trapped knowing their own potential, but no one will allow them to have what they need to achieve it.
The most scary part of this, is that the “55 to 5” means there are 50 other families out there who DON’T know their rights and had their 504’s also summarily dispensed with. 50 more kids not receiving the services they are legally entitled to.
Does anyone know how I begin/who I talk to/Where I can go to begin a class action suit against this school on behalf of all those students similarly situated to my own? I feel an obligation to protect these kids as much as my own daughter.

Sorry so lengthy, I’m still in shock and venting!