Yes, the headline is correct. From Todd Starnes:

According to a police report, the mother of a 17-year-old girl complained after her daughter saw the transgender individual walking naked in the locker room. A female swim coach confronted the man sprawled out in a sauna exposing himself. She ordered him to leave and called police.

The coach later apologized when she discovered the man was transgendered but explained there were girls using the facility as young as six years old who weren’t used to seeing male genitals.

“They’re uncomfortable with him being in there, her, being in there and are shocked by it,” parent Kristi Holterman told KIRO-TV.

And the transgender person had this to say:

Francis told KIRO-TV that he was born a man but chose to live as a woman in 2009. Francis said he felt discriminated against after he was told told leave.

“This is not 1959 Alabama,” Francis told the television station. “We don’t call police for drinking from the wrong water fountain.”

So, it's not his issue(look if he has a penis, I'm going to say his). It's teenage girls who have the problem with being uncomfortable with someone with a penis in their locker room. Good God.