but that was taken away from him tomorrow because he took another kids hat a recess so he could play in the son as he had left his at home
Hate me if you will but the above looks like bullying and schools rightly take a very dim view of it.
Bullying is systematic and continues over a period of time. If a child makes one bad choice, it's not yet bullying. It's an important distinction.
I'd say you need to have a meeting with all involved (teachers, admins) and hear them report. You can also share what you know. One hopes that a clear picture starts to emerge. If not, then pursuing further assessment is a good idea.
Reading assessments are also a tricky business. My kids do poorly on DRA and Fountas-Pinnell because they are retelling-based. If a child has trouble with sequencing ideas or discerning what the tester wants them to say, it throws off the comprehension results. You may want to look into what tests they use and check it with an alternative like Reading A-Z.
