I suppose that if Penguin change the tagline now or remove the 'unflinchingly truthful' line, that is tantamount to them ADMITTING that they know or suspect that the books are a pile of hogwash. And as obviously that would hit sales, they won't do that. So I suspect that they are going to swing it around, if necessary, to pile all the blame on the Walkers, which is fair because SW is the one who will have signed a contract and stated that everything was true.
Penguin should bear some of the weight of responsibility though. I also suspect that there's a good deal of back pedalling in a lot of places right now as everyone tries to work out just WHO is to blame for this farago.
The dead sheep disposal method won't have raised an eyebrow I shouldn't think. Most publishers, indeed, most agents, have absolutely no idea how hard and regulated animal keeping is. I wrote a book about one type of wild animal and got reviews complaining about how the main characters didn't 'cuddle and stroke' the animal more. A WILD ANIMAL. Not a cute story prop. Because people don't know and they don't care, they want cute.
Phew. I'm still pissed off about that.