A competent lawyer would write this up so quickly that Amazon would settle rather than fight it out. I don't know the full story but it seems like this is a quick 5 figure payout for the family.
That would require damages. If the child were injured, that would be provable. Otherwise the claimants will be in for a long and drawn-out process of manufacturing lasting emotional distress.
Emotional damages of seeing your child nearly get talked into electrocuting themselves by an appliance. Thats actually traumatic if framed correctly. Plus the bad press? Amazon would be smart to throw $20,000 at this and hope it fades away.