He has been previously suspended for other pranks so I think there may be something to the thought that he was attempting to make it look like a suitcase bomb. Was there no other acceptable case that he could have transferred all the parts from the previous working clock to? Sure there was but it wouldn't have looked the way he wanted it to.
Lawsuit was just dismissed with prejudice. http://www.cbsnews.com/news/clock-boy-ahmed-mohamed-discrimination-lawsuit-dismissed/ The kid did make out though. Has people thinking he is some inventor when he only did what any 7 year old could, take the parts from a working alarm clock out of its plastic case and screwed it into his pencil box.