I don't know that her humiliation is the basis of her claim (although it certainly goes to her damages theory).
This is pure fraud in the inducement. From the facts in the article, it appears Hooters made a material misrepresentation upon which Ms. Berry relied to her obvious detriment.
The key jury question will likely be whether her reliance was reasonable under the circumstances.
While I agree with you that the newsmedia usually screws up the facts, particularly in legal matters, if the facts are as they are reported in this instance, I wouldn't hesitate to file such a suit.