I have not heard of that failure before. Now what can happen, when you start using higher contents of alcohol, it can start to clean off deposits left from older gasoline, and can clog the system (I wouldnt suspect that to happen except on an older vehicle). On vehicles where we switch over to e85, we always change the fuel filter after a couple hundred miles of initially switching over.
We have yet to see any problems on newer cars w/ the higher content ethanol fuels.