Was this diagnosed before he climbed into her bed when she was 4 y.o.? I'm no psychologist and I don't know what her own diagnosis involves but it seems that this diagnosis could be identifying a condition that resulted from abuse dealt by someone that she normally would trust.
Overall from what I have read the last few weeks Altman seems to be an unethical sleeze who decides how to proceed on everything based on an analysis of what he can get for himself - the perfect type of person who would abuse someone who he saw as being in a weaker position, like his little sister with no thought to how that would affect her later in life.