Unfortunately, some companies choose not to recall defective products because of what it will cost them to do so. Instead, some will choose to take their chances with lawsuits and payouts. This has happened repeatedly in the automotive industry. Even if car design and manufacturing defects result in injuries or death, a recall might not be issued if the company decides that the number of injuries or deaths does not justify the cost of the recall.
However, companies do have a duty to report to the CPSC known incidents where a person is injured or killed in connection with their product. Failure to report known incidents can lead to civil and criminal penalties for the company. Whether it is necessary to implement a recall after a report is somewhat up for debate and the lines between a serious hazard and one-off incidents are very blurry.