Possible lawsuit over blended bandage?

So we bought a smoothie from a large company(and consumed most of) that ended up having a bandage blended into it, what in your opinion would be appropriate 'punishment' and whatnot we should request from the company, lawsuit and non?
apparently they have contacted their insurance company with a claim already and I'm confused what this means, are they going to attempt to buy our silence or what does this mean?

What would you do in our shoes?

I can't believe that they would only give back the cost of the drink when their employee has possibly infected my husband and son with god knows what transmittable problems. The company has already admitted that is a horrifying experience.

I would highly advise not taking any further action.
If the media and/or general public find out that you are suing over a claim of having found a bandage in your smoothie you will quickly become one of the most hated people in America. People will either think you planted the bandage or you are a greedy person abusing the system to get money you don't deserve.
Meanwhile, you aren't likely to win. After all, what are your damages? How were you harmed? You are not entitled to money just because you were grossed out. Your actual damages are almost non-existent. Emotional Distress requires that you prove you have suffered emotional damage requiring therapy. You would need a therapist to testify that you have an emotional disorder as a result of this incident. This would entitle you to the reasonable cost of therapy to recover from your trauma. Punitive damages require that you prove the act was willful and malicious. Here is the damage break-down:
Actual Damages - The Cost of the Smoothie
Emotional Distress - None
Punitive Damages - None

You would be awarded the cost of the Smoothie. Maybe even less. Juries often award damages in the amount of $1 in such cases to comply with the law, but express their disgust.
The court system is not a lottery. You don't win big just because you slip and fall in the right place or find something gross in your coffee. You can't even prove that the bandage was in the drink when you bought it.
By the way, the fact that they contacted their insurance company with a claim just means that they have notified their insurance company to see what, if anything, the insurance company wants to do. If the insurance company thinks there is a case, they may suggest a settlement offer. In your case, however, I imagine they will tell them to fight the case in court.

UPDATE: It is HIGHLY unlikely that your husband or son was infected with a disease as a result. Have they been tested? DO they have a horrible disease as a result? You can't recover damages based upon what MIGHT have happened. You can only recover damages based upon what DID happen.

UPDATE 2: Wouldn't it make more sense to have them test the bandage? Even if your family tested positive for something you would still need to demonstrate that it came from the bandage. (It's about a billion to one chance, BTW).

You'll only get back the cost of the smoothie.