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On a quick read of the article, her publishers surely don't have a leg to stand on.
They appear to have broken the contract - unless, as pdurant says, there is an (unreasonable) contract clause - -which almost certainly not be legal in UK , don't know about US.
And if the contract is simply for the one novel, as the article would suggest, I think she should sue the socks of them.
If the facts are as they seem, I should think a lawyer would leap at the chance, even no win no fee - could produce some good publicity for them and the author, and bad for the publishers.
Good luck, I hope she comes out of it OK.
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