Well, if it's a local company, are you surprised that it hasn't been picked up by national news coverage? They ran an article in the local paper, so some media has already covered it. The problem is that it's a local company.
Of course, the media always likes to focus on the negative, but this isn't new at all. It happens all the time, but people pay attention to it when they feel sympathetic towards the subject of that negative attention. Anyway, she already has tons of sympathizers, so it's not like all is lost with her. Give her a year or so, a new PR team, some media lessons, and she'll be ripe for a comeback.