It seems that the advice I received from some of the more level-headed ehellions was spot-on. Just to let everyone know - I ended up NOT saying anything to the management about my conversation with Sandy. I had a conversation this morning with a higher-level manager who also happens to be a good friend of mine, and he told me that the managers involved are sick and tired of hearing about Connie and her rotten behavior. The announcement about the reorganization is going to take place tomorrow. As of tomorrow, Maggie will have the power to discipline Connie on her unprofessional treatment of the rest of our team, and if she doesn't like it, Connie can leave.
I came out smelling like a rose because, as far as management knows, I refused to get involved. Thank you, rdge, for the sound advice. I really appreciate the wise perspective.