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That's a pretty messed-up story. Without actually seeing the contract, it's hard to address the specific wrongs done here... but I'd think the author would have retained the right to review the TG's edits before permitting their publish. If she signed that right away, tough luck; if she didn't, and TG didn't seek her permission to edit/massacre, that's grounds for legal proceedings.
At any rate, it's a good lesson to all to PAY ATTENTION to those legal documents... don't just get all starry-eyed over getting published and gloss over the paperwork.
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