Here's my controversial two cents on this issue.
Since nursing instructors are typically paid poorly, finding and replacing instructors is an immensely difficult feat for schools to accomplish. Therefore, schools tend to hold on to really terrible nursing instructors because they are virtually irreplaceable.
Nursing students, on the other hand, are lining up in the thousands for the chance to become a nurse. If the school loses a nursing student, there's typically about 500 other students waiting in the wings who will readily take that person's place. In other words, students are easily replaceable.
Let me repeat: instructors are virtually irreplaceable, so accusations against them tend to be overlooked. Students are so easily replaceable, so accusations against them tend to stick.
I am not condoning the hideous behavior of this wacky instructor, and the things she did were so very wrong. However, too many schools are willing to turn the other cheek, even when they have full awareness that the instructor is a sorry excuse for a nurse. It's all about supply and demand. If more nurses were willing to teach, this person would have been gone a long time ago.