This is a significant blow to the reputation of this degree, as well as the students that hold it.

In my field (Software Development), companies have started to engage in their own testing. This morning I was pondering if that was because they had lost faith in the Universities; this article would seem to support my suspicion.

Quotes from the Faculty:

I trust that the irony of cheating in an ethics class is not lost on anybody

another gem:

For the remainder of the term, I strongly encourage everyone in the class to conduct their own independent work... If you are found to have cheated in ENGG 401, you will not graduate this year and you will forfeit your iron ring.