Please tell me you carry CGL insurance coverage. This is important because then you can deal with your own insurance company as to the claim, they will conduct an investigation and "adjust" the claim (if possible), hire attorneys to defend you (if necessary) and seek reimbursement from the responsible parties.
If you don't have your own insurance, get in to speak with an attorney about the specifics so that he/she can help you. Given the size of the claim, I would expect a "duck and cover" response from the manufacturer and distributor, and they'll likely need persuasion to recognize their exposure/responsibility. Plus, If you do the talking with the other parties, what you say is "evidence." If the attorney makes the statements, they're "argument and negotiation in furtherance of settlement" (and inadmissable typically).
Good luck.