Interesting.
But how can S^S buy what the author is unable to sell?
I am not a lawyer, so I can’t answer that question.
However I would suspect that a lawyer would argue that this is not the same as buying a stolen car, which has a title,,,or stolen property.. The publisher has the right to buy stories of any kind, fact, fiction satire or whatever. The fault is with the seller who violates a contract, commits libel, plagiarism or whatever.
You will recal that the New York Times has printed information damaging to national security and avoided prosecution because their defense was that they did not steal it and it was going to be publish by someone somewhere as it was at that point public information.
Pretty close to the case here.
Now whether it is ethical or not is another discussion but as most of us old guys have learned, what is legal and what is ethical are frequently farther apart than a derby winner and a jackass.