It depends what the story is (for example if the domain simply expired then there is no story), but if there is something dodgy or malicious going on then the press may well be interested in a scandal involving one or more celebs, pending clearance by libel lawyers.
I do hope whoever is behind this has considered that.
Libel lawyers would be the least of the problem. The issue here is identity theft and fraud as far as I can tell.
One thing is clear: The domain did not expire.
WARNING: I am speculating and nothing more. I have no knowledge of the efforts to reclaim the domain or the circumstances under which it was lost.
This has all the earmarkings of a socially engineered attack on his email account (similar to guessing Sarah Palin's password reset function on Yahoo, etc.) Even if he registered the domain by proxy (a choice godaddy gives you) you are still able to log into godaddy's site and transfer domains. All registering by proxy does is add a layer of obfuscation to who owns the domain for the uninitiated.
This means that all they had to do was target his email account to get a password reset from Godaddy and transfer the domain to themselves. If they wanted to make it appear more legit, they would put the godaddy account back to how they found it. I highly doubt Godaddy keeps logs of account changes for very long, but they may keep IP access logs for slightly longer. Depending on how long this problem has persisted the access logs may have been rotated to /dev/null (thus being deleted.)
Godaddy is also not known for being savvy enough to stop socially engineered probings to customer service phone workers for them. Meaning it's pretty easy to call up and claim to be someone else, and it's easy to glean information that would allow someone to hijack an account. Godaddy is not known to be the most trustworthy registrar. I personally have had to ask them what email I registered something under, and they gave me that info with little confirmation of who I was. I could have been anyone with basic knowledge of home addresses, phone numbers etc. and even if I didn't know the answer some slippery con tricks using stories about moving etc. could work. In short, with the right slippery tongue, you could have Godaddy themselves change the email address the password resets go to or simply have them give you a password.
For the record: I am not involved with the efforts to reclaim the domain or in the know for what happened this is just my observations based on what I do professionally to support my music habits.
Also for the record: Password reset functions based on information about you are another password. You should engineer them to be very difficult to guess the same as you would your password. Ie. non-dictionary phrases, random characters, over a certain length etc. They should NOT be something easily guessable about yourself, and should not be grammatically correct or predictable as language.
However, Godaddy doesn't care about secret questions, etc. To retrieve a password reset, all someone would need to do is have control of the email account the registration used. If I have control of someone's email (by guessing passowrds, etc.) I can have Godaddy send me the customer login and a new password reset link. Once that is done, any function is available.
If RSL's password to a webmail account was weak then this attack would succeed eventually. Without RSL healthy and able to follow what was going on, he may not have been aware about such probings at the security of his accounts.
This is why webmail is a weak means of secure communications, and why Palin should have seen much more heat over this. If you don't have control of the server, it is very difficult to know if someone is trying to brute force your account. This is because without having access to logs on the server, you are removed from the ability to be in the loop regarding the security of your account. The answer to this is frequent password rotations, and using strong password guidelines. With RSL not able to handle this, his passwords were probably at risk longer than they should have been (assuming he did frequently rotate his passwords, etc.)
While I applaud the efforts of those helping out, ultimately the legal issues may be that RSL's better half or his attorney may be the only one that can effectively communicate to Godaddy personnel. It should probably be focused on to provide help in securing Godaddy's approval of a proxy communicator (Ie. approved non-family person, lawyer etc.) to continue to resolve the issue.
But those involved are smart and know this.
This post should not be taken as a how-to of socially engineering attacks against others on the net.