No institution should ever be considered above the truth (we keep making that mistake). Yes, this puts a black mark on the engineering profession, but how could that be a bad thing? I believe humility is a rare but necessary ingredient for a good engineer. In this case, the design team displayed considerable arrogance and disregard for the truth we, as engineers, have to struggle with. Let's learn humility at their expense.
Doesn't put a black mark on the people who are doing it correctly. If anything, hopefully will convince owners to not just go with cheapest option. Make sure your engineers are not only credentialed and licensed, but also experienced. And there's nothing wrong with peer review. It costs a lot less than settlements.