While it's purely speculative on my part that it was squashed at Joe Pa's request, let's give him the benefit of the doubt in this situation and assume he did not do that. What I would expect him to do is, threaten to go to the press, report it to the state police, call the FBI, get John Walsh from America's Most Wanted involved. What I don't expect him to do is continue on as though nothing happened.
I've already said legally he did the bare minimum to keep from being sued, so there is no point in arguing the legal points with me, considering I never tried to make that argument. Morally he failed, too many instances to believe Joe did not have at least some idea of what kind of monster Sandusky was. Maybe not to that extent, but he knew and simply viewed his legacy as more important than the lives of young boys.