Not exactly news, but InsideHigherEd.com has a good summary of the incident here:
… In a statement, Frances Bronet, senior vice president and provost at Oregon, said that the university’s lawyers scanned and preserved the records but did not actually read them before returning them to the health center. “I urge UO students to use our counseling and mental health services without fear that their counseling records will be disclosed to other parties or UO departments,” Bronet stated.
But that policy has since changed. It now specifically states that an exception to confidentially can be made when a student’s “emotional condition is being used as a claim or defense in a legal situation.”