It's a rumor, but you shouldn't be surprised if it's true. After all, they both have one-and-a-half retractions on their CVs and couldn't come up with an excuse better than the dog ate my homework.
Surprised that they failed midterm review. After all, they are well connected and so would have made things happen..
AB and SK both failed midterm review. The president "clearing" you of misconduct doesn't mean that the other faculty who have to approve your midterm case will clear you too.