If they kept quiet and someone were injured or killed due to a known defective product wouldn't they be open to lawsuits?
I mean, if the problem is limited to a certain batch of power supplies (or just that single faulty one), you've just deprived a large number of customers of the use of product. Certainly if you have no way to segment the people who may be affected, then the safest thing is a total product recall, but that's generally the last resort any business will take in this situation.
In any case, I hope this is just a speedbump for you guys and you continue on successfully.
At least they aren't crazy and are doing the right thing. I'm guessing someone really regrets trying to save a few pennies on the charger.
It's a tough business no doubt. I think they'll make it through just fine though.