The students and their parents launched the lawsuit against St Francis High School in Mountain View, California, after the image sparked outrage last year
They say the school offered them an ultimatum to leave or be expelled
The school says the teens left voluntarily in June after the 2014 image resurfaced
The selfie shows the three boys with a dark green mask on their face
In the suit, launched in Santa Clara County Superior Court in August, it is claimed that one boy suffered with acne and the mask was to help with that
He had taken a pic with a white facemask a day prior to the green one, it adds
The boys say: 'A photograph of this innocent event was plucked from obscurity and grossly mischaracterized during the height of nationwide social unrest'
The school's president said: 'St. Francis High School is committed to creating an educational environment where all students feel safe, welcome, and included'