"We told the parents [on Tuesday] that we were reconsidering the review in light of a decision by the Rotorua Girls' High School board that their decision to stand down the students was lawful and we outlined possible options for them," Ms Casey said.
Following this meeting Karri-Ann Vercoe, Moerangi's mother, told the Rotorua Daily Post she would not give up.
"My next step is to get legal advice about taking Ally Gibbons to the High Court if the matter is not solved. I know that will be a lengthy and costly path to take but people need to know I will not let this go until our girls get justice.
However, on Wednesday, Ms Casey confirmed the review would go ahead.
"Today we decided we will still ask an independent reviewer to have a look at the process the school used to make the decision before the parents need to consider anything more formal," Ms Casey said. "We will continue to work with the parents and the board."
Board of Trustees chairman Chris Nairn said the board had consulted with a lawyer in the initial stages of its investigation into the incident.
"We consult with a lawyer for a number of things we deal with and in the case of the 23 students being stood down, we wanted to make sure the principal's decision was lawful."
Mr Nairn said the board recognised the situation was emotional for the parents and students affected.
"If I was in the same position as these parents, I would want to know the board sought legal advice to make sure the decision was procedurally fair and substantiated."
He said while parents challenged the legality of Ms Gibbons' decision, the board could not meet with them to mediate the situation.
"In an ideal world, the board would like to meet with the parents to listen to their concerns and try resolve the issue, however, we cannot do that while they challenge the lawfulness of the principal's decision. The next step for the parents is raising the issue with the Ombudsman."
The board could only respond to the students being stood down and did not have the power to reinstate the students' leadership roles, which were taken off them, Mr Nairn said.
A NZ Teachers Council spokeswoman said two complaints had been laid against Ms Gibbons and the Complaint Assessment Committee was investigating. Ms Gibbons said the matter was out of her hands and would not comment further.