This WSJ article goes into more depth about the law school/job market issue:
http://online.wsj.com/article/SB119040786780835602.html
To be fair to Brooklyn Law School, the one being sued, it cannot be considered a "diploma mill" by any means. Second-tier, yes, compared to the heavy hitters (Harvard, Yale, Stanford, et al.). But it isn't enough to be an average student, not from that school, not in today's market. And only a few can be at the top. Brutally Darwinian, eh? (Reminds me of my Hollywood years.)
Looking at what contract attorneys earn in their cubicles while digging out of debt, I suspect many would've better off as electricians, plumbers, or nurses. Unless of course they really "love" the legal profession. I've heard some people do.