[Brody]

Gotta concur with Lasher and the_logos. Have one person as the final arbiter and deal with the problem (preferably before it turns into a factionalized situation).

I don't think it's a matter of whether players have the right to know everything about drama going on behind the scenes. The simple fact, in my opinion, is they shouldn't. If drama is filtering down into the playerbase, it's effectively poisoning your game. Deal with poison problems as quickly as you can and move on to other business. Hold a special event for morale boosting. Give people something else to focus their attention on instead of idle gossip and drama.