I had read awhile ago about this incident. I was one of the many that read A Million Little Pieces and did not see anyway in heck it could have been a real story. I was furious after that story. I returned the book to Amazon.
I haven't read the book that you refer to, but I know the story. It would have been a good story, even if it had been printed as fiction.
Recently, I bought the Edgar Sawtelle book on Oprah's recommendation and it was great UNTIL the last 3 chapters. Boy, what a disappointment. Her message board has been lit up about that book, too. I sold my copy on Ebay.