The film is one of the best versions of Romeo and Juliet on film, and I don't consider the nudity (which is brief) salacious in any way. Then again, here in the UK, we've always been a lot more lenient with sex and nudity than our US cousins. British Board of Film Classification Guidelines allow for nudity even in the lowest category (U - akin to G in America), provided it is in a non sexual context (including children, teens, etc). The next category up, PG, also allows for nudity without strong detail. Romeo and Juliet has a PG rating over here (it would have been "A", the equivalent certificate, back in 1968). Other films containing nudity at PG in the UK include Man Des Sources, Barry Lyndon, and the director's cut of Amadeus.
So the film itself is (and will continue to be) considered eminently respectable, at least on these shores. The question of what went on behind the scenes is another matter entirely, and obviously I wasn't there so cannot say (I am also dubious of some of the parents concerned). But I can't help feeling slightly suspicious of the timing of this lawsuit, especially considering remarks made by Hussey previously (as recently as 2018).