That makes zero sense at all.

People learned this person committed suicide and the organization decided not to address it. That is strictly worse than addressing it no matter how you slice it.

The organization is liable for their own communications. They aren’t liable for the rumor mill. It doesn’t have to make sense objectively; the organization’s actions only have to make sense from their perspective and incentives.

OTOH, I’ve worked at office buildings that provided a clear view of a jumper, and there were formal communications that counseling was available to anyone who witnessed the jumper and felt they needed it. Which sort of underscored the fact that jumpers in the middle of busy downtown areas aren’t broadly reported to anyone who wasn’t likely to have directly seen them in the first place.