If FERPA makes it illegal to share the data with researchers, then certainly it shouldn't have been shared. If FERPA allows sharing the data with researchers,

If FERPA makes it illegal to share the data with researchers, then certainly it shouldn't have been shared. If FERPA allows sharing the data with researchers, is it right/proper/legal to share only on the condition it can't be used to harm the schools in court? Presumably that part is not in FERPA. (And to be clear, California here didn't just say they couldn't use the data in court, they said the researchers could not testify in any court case at all against the state. But we're talking hypothetically)