This is just the university caving, not making the decision. The wrath should be directed towards the AG for not telling the affiliate to take a hike. I wonder if there's any way of finding out who complained.
The AG's website says that he doesn't advise the university, and that this is a hoax. He also said that the people who are spreading this information about him are liars who will get "coal in their stocking" (no joke).