It seems that Sotheby's is doing all the right things. Monies are being refunded, the people responsible for mistakes have been removed, and Sotheby's is legally pursuing parties it feels fed them the fakes in the first place. If people buy from reputable dealers and auction houses, and an object turns out to be not what it purports to be, the buyer will get his or her money back. There may be more to the story here, but for the time being, all it seems is that Sotheby's got hoodwinked and is attempting to make it right. Child and his colleague, Joseph Friedman, have been cleared by the company of any wrongdoing.
Fakes are a fact of life in the world of antiques.
What's far more important is how a dealer or auction house reacts after something not right sells.