There are lawsuits filed for delivering shoddy work, unmet deadlines/commitments. They are just less publicized, because human life is (usually) not at stake.
But they can. They can also have their license suspended.
Software Engineer on the other hand, is just a label that doesn't mean anything. AFAIK, no jurisdictions license Software Engineers. Unlike law, there's no punishment for working as a software engineer (although there are some jurisdictions where the title "Engineer" is regulated).
Are there any jurisdictions where a Software Engineer can lose their license?