The Pennsylvania Human Relations Commission has issued a finding of probable cause of racism on the part of suburban Philadelphia’s Valley Swim Club.

The facility’s management canceled a contract with a group of 65 minority children this summer, saying it was the result of overcrowding. However, the children reported white members made derogatory comments during a June swim trip, and the club’s director stated on television that the kids changed “the complexion” of the pool.

As national attention grew, the facility invited the children to return, but their camp program said it would instead pursue a lawsuit. In the 33-page report, the commission also noted that the club has no African American members.

“an invitation to sit down with our staff and have the parties settle their differences,” said PHRC Chairman Stephen Glassman in an interview with CNN.com. If that doesn’t happen, the club will face a public hearing, damages for humiliation and a civil penalty of up to $50,000. Lawyers for the club said it plans to participate.