They are getting hammered it seems..
Maybe they don't, but your local paper, which carries AP stories, might want to know.
Relate to your local paper clearly in a letter what has happened, and how the AP tried to cover its tracks. No real correction, just airbrushing out intentionally deceitful reporting. Let them know that they left a number of papers carrying the story on the hook.
Remind them that repeating another's malicious lies does not insulate them from liability for demation.
Demand that they cease publishing AP stories.