When something happens within a company, a falling out or disagreement; the only good option is transparency. The very nature of the word implies complete openness, allowing others to see everything on the other side.
Every employee does not need to audit the company, and confidential information may have reason to be, but when something big happens, the last thing you need is gossip. The truth travels slowly, while a rumor can run circles around it. So give truth a head start.
Honestly sharing the details of an incident, no matter how awkward or unfortunate, will eliminate the need for people to speculate. Gossip causes division, doubt, and suspicion, while transparency instills confidence and trust.