A young boy suffered a seizure while playing Spyro: Enter the Dragonfly, a game mostly held to be crap in general. After not heeding the warning at the beginning of the game, the boy's mother is no suing Vivendi, Sony, Sierra, and the video store that rented the game. The woman claims the companies were, "negligent, careless, and reckless with regard to the design and manufacture," of the game; that is what the warning label is for lady.
Nintendo got sued a couple of years ago by angry parents whose child had died playing N64 in a similar epileptic incident. Nintendo won on summary judgment after the other side failed to respond. I bet the defendants in this case will have similar luck.