You're the one who said "I think, however, that the station/owners did not react wisely." and "IMO, they exposed their overall organization to be of poor management, poor ethics, and poor values. Frankly, I've heard a fair number of folks literally chuckle and shake their head about how the incident was handled."Huh? My "solution" to what exactly? What question is it that you suggest I should "answer?"
So, how would you have handled the situation? Go ahead, confer with your "fair number of folks" on how you should handle a very public incident with very public people.