Having come from the industry, I don't see how this is worse than when others have gotten caught massively selling products off-label. Selling off-label is illegal. It leads to customers not using the products in question anymore off-label, investigations, fines, management changes at times, stock drops associated with class action suits, etc. But, in the end, the headlines pass and the companies get back on track with little impact on the overall future of the business or their mid-term valuations.
It's absolutely ridiculous that every time a stock drops, these ambulance chasing attorneys troll for plaintiffs in hopes of becoming the lead in a lawsuit that they never intend to pursue beyond a settlement for their legal fees. It's a farce of a system, but unfortunately, laws in America are made by lawyers just as accounting rules are made by accountants; all with the express purpose to make them money and little, if any, eye towards improving corporate governance.