Yes, this is concerning. But there's also the other side. Some of the little miscreants who shared my bus ride were positively nasty. Some surveillance would have helped a number of people avoid bullying.
What's your plan? The parents don't believe the charges made against their child. At least the video helps the school figure out what happened and convey this accurately to the parents.
But it sounds like you have some magic idea of how this will work. Could you share it with us?