The child, identified only as L.G., lost the glans (or head) of his penis due to problems with a circumcision clamp made by Mogen Circumcision Instruments of New York, The Atlanta Journal-Constitution reported.
David Llewellyn, an Atlanta lawyer who prevailed in a similar case last year in Atlanta, won the judgment handed down in U.S. District Court Friday, the Journal-Constitution said.
The parents "are extraordinarily distraught and angered that this company tells people (the injury involved) can't happen," Llewellyn said.
A spokeswoman for Mogen said the company is going out of business due to competition.
She said the Mogen clamp is "painless and safe" when used properly.
It's unclear whether the Florida parents will ever collect the money, as Mogen is in default on a $7.5 million judgment in 2007 from a Massachusetts litigation, Llewellyn said.
The court said Mogen must pay for medical expenses and for the years of psychotherapy that will ensue.
The child experiences pain when he urinates. He will ultimately be able to have sex, but he likely will be embarrassed and likely have trouble forming "meaningful" relationships with partners, the court order said.
"At 3 years old, L.G. is aware that he looks different from other boys based on both his own observations and comments from other children which make him feel inferior," the court records showed.