The Running With Scissors lawsuit has been settled out of court:
A family that claimed author Augusten Burroughs defamed them in his best-selling book "Running with Scissors" has settled a lawsuit against the author and his publisher, their attorney said Wednesday.
Burroughs and his publisher, St. Martin's Press, agree to call the work a "book" instead of "memoirs," in the author's note and to change the acknowledgments page in future editions to say that the Turcotte family's memories of events he describes "are different than my own," and expressing regret for "any unintentional harm" to them, according to Howard Cooper, an attorney for the family. He said financial terms of the settlement are confidential.
Both sides are claiming victory; Burroughs has more on his blog.
It's an interesting question. I've never read a memoir where details haven't been changed, names obscured, events compressed, etc. So when does a memoir stop being a memoir and morph into fiction?