The program was officially discontinued in August 2014, and would have given an iPad to every student, teacher, and administrator in the school district. The Board of Education has instructed its attorneys to explore the possibility of a lawsuit against both Apple and Pearson, according to The Los Angeles Times:

L.A. schools Supt. Ramon C. Cortines "made the decision that he wanted to put them on notice, Pearson in particular, that he's dissatisfied with their product," said David Holmquist, general counsel for the nation's second-largest school system. He said millions of dollars could be at stake.

The iPad program would have centered around a curriculum built for the devices, and the school district had planned to spend as much as $500 million on its development. Textbook publisher Pearson was to design a curriculum for math and English, which was only ever partially completed. The program rolled out in the fall of 2013, and quickly faltered. Along with a partially delivered product from Pearson, the program never gained wide acceptance from school administrators and teachers.

Source: The Los Angeles Times