The argument as I know it goes somewhere along the lines of "water drops act like lenses that focus sunbeams so that they burn the plant". Several experiments have failed to reproduce this, though (link in German, sorry) - a drop of water, even a perfect half-sphere simply doesn't act as a lens. However, there are circumstances where it might happen, and that appears to be if the structure of the leaf surface is not flat but irregular or hairy. In that case, water drops might "hover" above the actual leaf surface, and sunbeams might be focused enough to cause damage.
This is not to be expected with grass, though.