The university will almost certainly not sue. When does that ever happen? I've been reading about research fraud for years and am struggling to think of an example of that. It's more common that academics sue the people who reveal their fraud than universities sue academics. The US does have the ORI which mounts a handful of legal cases per year.
No, universities are a reputation economy and do their best to avoid reacting to or calling attention to fraud. They benefit from the perception that their professors are all competent and honest. This particular incident has got some press pickup due to the irony of an ethics professor who wrote a book about breaking the rules at work being caught cheating, but academic fraud is common and people who report it say that almost invariably nothing ever happens. Even in the rare cases when there's an investigation, it all gets swept under the rug. Note that:
• Harvard took over a year to request retractions, even after outsiders did the heavy lifting for them.
• This prof has silently been put on leave.
• Harvard won't comment.
• She has many coauthors on the bad papers. Nothing has happened to them. They were all blissfully ignorant.
> most research that is wrong is not wrong to intentional acts of deception, but just that people make mistakes
In reality the line is blurry to the point of being meaningless. Many glaring problems in research papers get claimed to be "mistakes" even when there's no plausible way they could be so. You have to be willing to penalize mistakes too, otherwise you can never penalize fraud.
As an example, check out the story at the top of this essay I wrote a couple of years ago:
https://blog.plan99.net/fake-science-part-i-7e9764571422
The before-surgery and after-surgery photos are clearly pixelwise identical except for the skin lesions, which were airbrushed out. Despite the sheer visual obviousness of this fraud the journal didn't notice, and when outsiders did the authors simply claimed “The photograph was taken in the same room with a similar environment; unfortunately the patient wore the same shirt” and the journal accepted this explanation! A ten year old could do better than that.
BTW don't conflate the unknown nature of answers to research questions, with the known nature of how to scientifically answer questions. The rules aren't hard, especially when you start from a base as low as "don't fake your data".