Yes, but the real question: is she giving up her 15%?
In an exclusive interview with Publishers Weekly editor Sara Nelson, James Frey's agent says basically she never shopped it as a novel, she believed every word, and of course "now that the trust is broken" she "can't possibly represent him anymore".
I'd be guffawing only slightly less if she'd accompanied that statement with 1. a check refunding all her commission money 2. a notarized revocation of her interest in future royalties; 3. she'd actually fessed up to some introspection about the demarcation lines of "fiction based on a true story/memoir/novel"
This is hogwash. She's leaving the sinking ship as fast as she can crank the lifeboat and avoid being eaten by the feeding frenzy of sharks. The fact that there's no more money to be made probably made the decision only quicker (Frey's film deal is pretty much toast now).
Broken trust my Aunt Fanny. WE KNEW. Everyone knew. You can't read that book and NOT know. The only thing that changed was that after The Smoking Gun posted the results of their fact finding mission, people started talking about it publicly. (well, I was but it was early days of the blog before anyone was really paying attention except Sarah Weinman and Peter Winkler).
This is almost enough for me to feel sorry for James Frey. Well, I'll feel sorry for him right up until he signs with Andrew Wylie. Then I'll go back to thinking he's an arrogant nitwit.