That's a fine opinion, but opinions aren't worth a damn once things escalate to this stage. As a psychologist, I respect confidentially more than most people, but when it comes to litigation, court orders, law suits for millions, even signed confidentiality agreements sometimes need to be overlooked. When my patients sign the consent form, we review all the exceptions to confidentiality, which is not a short list and certainly includes "court orders". PSU should have explicitly explained this to all their employees and made it quite clear that there is no guarantee to confidentiality in certain situations.
The REAL tragedy here is the refusal to allow interviewees to have their own counsel present and to forbid them from recording the interviews. Given the gravity of the situation, I would have refused to cooperate without my legal counsel present. During internal investigations, which is what the Freeh report really was, employees ALWAYS have the right to private legal counsel. Not only is this allowed, but it is typically proactively conveyed and encouraged by he company. The way PSU handled this was shady as hell....