Don't know firsthand about the purported rumor.
It's the sort of thing that you hear and say with a high degree of confidence "Somebody had their ears screwed on wrong".
I do know that we are practicing just as we practiced before.
Further, I do know that when Hitohiro Saito Sensei taught in Denver, he taught as he had in the past and as his father had in the past. No differences.
Changes always accompany the passing of great icons like the late Saito Shihan. In this case I, personally, am highly confident they will all be of an organizational nature.
Perhaps the organizational changes ("Iwama Ryu" is actually an organization) is what you've heard.