Time heals all wounds. It is a learning experience for the whole family. If you had stated what would happen with X grouop over Z group and Z group won and this is the consequence she is learning what not to do and whom not to hang around with. My aunt used to say "water seeks its own (lowest) level.
She is now going to have to earn the trust of friends. She is going to have to seek out new friends with different goals and objectives that are positive like college and bettering themselves. When she is with people who are wanting to do wrong she should or would be best to leave the area or this will reoccur. It's called a gut feeling and not the peer pressure thing. It's best to walk away and best called a sissy than to be with the group and go down with them. She was judged as being one of the "bad" group. The old saying of you are who you associate it even if you are not that good old perception. A hard pill to swallow for many when they want to be included in the group.
Summer school, camp, babysitting, hobbies are great to take up extra time. It also shows how you can be independent of people and still be able to do something that is not connected to peers but to yourself.
Another to remind her is that the people she goes to school with will not always be the people she will associate with the rest of her life. It is a blow to the ego but it is an awakening call that there are more positive possibilities in life.
Whatever the reason for family counseling it was a good one. May you all as a family learn from this and know that you are not alone. If the families have dropped you all as a "hot potato" than you need to seek out others as they were not friends only acquaintances that you thought were friends. Most people have 2 to 4 good friends their entire life that they can count on in time of crisis.
Good luck to you all. Do keep us posted.
The other S.
PS Don't sweat the small stuff.