My son is in the moderate cognitive class and he has two class mates that chronically cuss and call him bad names. The school states those students have tics and cannot control it. However, often it is directed at my son. He is very by the book follow the rules so the cussing and name calling really triggers him then he has an outburst; breaks his water bottle, needs time outside of class to walk and cool off, etc. while the other students get to remain in class and continue this same thing daily. I have asked what we can do about it and the teacher said nothing. What are your thoughts? 

Have you spoken w/ the sped supervisor? Explain that you reached out to the teacher and were told nothing could be done, but your child is now struggling behaviorally at school due to the other children's behavior. You could request an IEP meeting to discuss this, and get the district's response in PWN.

If the placement the school has decided is appropriate for him has antecedents that trigger behavioral outbursts, my guess is that it is not an appropriate placement.

You child is a "is very by the book follow the rules" person and he needs to be in a class where students who break the rules are disciplined.  It is not appropriate for him to be in a classroom with students who have uncontrollable tics where he gets called names and cussed at - even if this is a manifestation of a classmate's disability and beyond their control.  If they cannot get his classmates to stop calling him names and cussing him out, he needs different classmates.

On the flip side, he needs therapy where he doesn't take a manifestation of a classmate's disability personally when he gets called names & cussed out.  If they can't provide a different placement, he needs to be taught not to react to this.  These are the only 2 options I see in this situation.  You might want an FBA to see if you have the data on what's happening correct because if this isn't the trigger, the change you are requesting will not help.  (I'm thinking that maybe the classmates cuss when they are given worksheets and it's the worksheets & not the cussing that's the real trigger.)