The San Francisco Human Rights Commission has finished its investigation into the Castro bar Badlands, and concludes that yup, Badlands really was discriminating against African-Americans (.pdf) at the door. The HRC found that Badlands and its owner, Les Natali, would enforce a dress code and require multiple forms of ID, but only when an African-American tried to get into the bar. The commission also found that Badlands refused to hire African-Americans, though once a complaint was filed, they immediately hired more diverse employees.
Since Badlands is not a city contractor, the city can't do anything with the findings, though the alcoholic beverages commission (drinks) and the entertainment licensing commission (dancing) are looking into whether the bar's permits should be pulled. And Castro For All is also calling for a boycott. No Staggering Through Fog coverage for you, Badlands!
Badlands and Natali, through their attorney, claim that the findings are false and not supported by evidence (though numerous people have submitted statements about the admission policies and hiring practices).Picture of Badlands from bobmeyers.com