Did we learn nothing from A Million Little Pieces? Come on, folks. If you've got a good story to tell, but it's largely out of your imagination rather than your memory, consider wiring a novel. The latest scandal to rock the literary world concerns Love and Consequences: A Memoir of Hope and Survival, written by Margaret Jones and billed as a memoir of life as part of a drug gang.

The book was exposed as a fraud and may now be pulled off shelves by its publisher. Talk about consequences. The CEO of Riverhead Books' parent, Penguin Group (USA), David Shanks, told The Wall Street Journal that a decision to recall the book hasn't been officially made, but the verdict will arrive as soon as today. Shanks added that "There are enough inaccuracies in the book to make us think that we will need to recall it."

"Margaret Jones" bills herself as a biracial foster child who came of age in South Central Los Angeles, running with the Bloods street gang and selling drugs. The real power behind the pen, Margaret Seltzer, is white and reportedly grew up comfortably in a suburban home with her biological family and enjoyed a private-school education. At least Pieces author James Frey actually had a history of drug use!

Penguin Group is owned by publishing giant Pearson PLC (NYSE: PSO). About 19,000 copies of the book have come off the printing presses, most of which have likely already been shipped to bookstores.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Random House, a division of the privately held media conglomerate Bertelsmann AG, is offering compensation to any reader claiming to be "duped" by James Frey's memoir, A Million Little Pieces.

Frey's story was a scandal that broke in January of last year. The author's ostensibly non-fiction book described, in excruciating detail, his miserable existence within an alcohol and drug-addled haze. Toe-curling details include a three-month stint in jail, an anesthesia-free trip to the dentist, and time in rehab.

Published in April 2003, the book hit the best-seller list more than two years later, after Oprah Winfrey named it her September 2005 book club selection. But Frey's ride of success wasn't long; in January 2006, it was revealed that the "memoir" contained outright fabrications. (Essentially, Frey is the Milli Vanilli of modern American literature). Readers who bought A Million Little Pieces before January 26, 2006 (around the time Frey confessed that his penned story wasn't entirely true) are now entitled to a refund from the publisher.

Those who bought the hardcover copy will receive as much as $23.95; ones who bought the book in paperback will get a maximum refund of $14.95. The entire program is expected to cost Random House $2.35 million. The publisher's decision, approved by a Manhattan Federal Judge, is expected to resolve several lawsuits already filed across the country by disgruntled readers.

While Frey's fabrications are certainly reprehensible, the fact remains that A Million Little Pieces reportedly helped countless readers who were struggling with their own addictions. I can't help but wonder how Frey's real story might have gone if he'd pitched his book as one "inspired by true events" rather than a completely factual "memoir."

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.