What Happens Now?

Not sure whether this is a Writers' Forum question or a Writers' Challenge. Certainly if anyone wants to use this as the basis for a story they're welcome to do so; it's really too involved for me to handle. But what I'm looking for is the most plausible wrap-up.

Here's the situation: in effect, it's Hannah Montana, circa 1980.

The folks at Disney have hired newcomer Cory Glenn, the 12-year old child (by a "previous relationship", actually a one-night stand with a groupie) of a prominent pop-country singer, to star as title character Bonnie Blake in a film called Junior High Cheerleader. Cory's a singer and a precocious instrumentalist (acoustic guitar, banjo and electric guitar) with a folk-rock background in afterschool programs and the like.

It's a huge success -- within two years there have been three films (with a fourth in preparation), major concert tours, and half a dozen successful bubblegum singles along with an LP or two -- all on Disney labels, credited to (smaller print) Cory Glenn as (larger print) Bonnie Blake. This being Disney, there are plenty of merchandising tie-ins: Bonnie's a straight-haired blonde with a signature red hairband (Cory's hair is light brown, shorter and curlier), and there are pompons, hair accessories, bracelets, action toys, costumes, and lots more, all -- of course, since Uncle Walt and his successors have been doing this at least since Davy Crockett -- representing the character, not the performer.

Anyway -- you probably see where this is headed -- as the summer "Two Sides of Me" tour is winding to a halt in August 1981, Cory, now 14, comes out at the end of the last concert, takes off the wig, and announces that she won't be Bonnie Blake ever again because she, Cory, is really a boy whose voice and appearance are changing to the point where he can't keep the deception going any longer.

The Disney people, of course, are apoplectic, envisioning (probably accurately) thousands of horrified mothers excoriating the company for betraying their family-friendly principles, not to mention massive bonfires of Bonnie merchandise. But what do they do about it?

Idea 1: Claim it was a hoax, that Cory went AWOL before the last concert (which is why they're firing her) and that it was her (female) temporary replacement as Bonnie at the last concert who untruthfully made that statement. Refund the money of everyone at that concert, claim that using a substitute was done without their approval, and announce that they'll be proceeding with someone new in the Bonnie role from now on.

Idea 2: Quickly announce they were duped, that they're considering criminal charges, and they are suing Cory's guardians -- her father's management agency reps -- for fraud and misrepresentation, with damages equal to the cost of recalling all the merchandise and refunding ticket prices from past concerts. Shut down the whole Bonnie operation, admit that they weren't careful enough in checking Cory's background, and ask for forgiveness. (Eventually they take their losses and settle the case in exchange for Cory and the agency forfeiting all unpaid royalties and future earnings. In the meantime, Cory, aka Glenn Donnelly, has left SoCal with his mother, whose drug overdose and subsequent prison term are what set this whole thing in motion originally, and the agency -- which had been planning to finesse the whole situation quietly before Cory (who didn't know) spoiled it for everyone -- no longer has any leverage over him.)

Idea 3: Try to stonewall, though I'm having trouble figuring out how. No refunds; either hire a new Bonnie without explaining why or shut everything down.

Any thoughts?

Eric