I don't see how the school can keep her on after this. It should be, "Stick a fork in her, she's Dunn."
But my guess is somehow she will come out of this as a victim. Also, she does have a law degree, so she may try some legal maneuvers to keep the school from sacking her.
And, of course, the media will be all over this like white on rice. (Oops! Can I say that? Should I say, "European-American" on rice?) Look for Katie Correct do a Jayson Blair type interview. Look for the book in a few months. You know the drill.