How can Kindle recall an e-book legally? Simple. The relationship between Amazon and the Kindle e-book buyer is not the same as that in the brick and mortar bookstore. You do not own the copy of the e-book, you merely license it. Therefore the doctrine of first sale under copyright law does not apply. Music and motion picture downloads work according to the same principle. You license the music of movie on your iPod. You do not own the copy, like you own the particular copy of the DVD or CD. Incidentally, just because there is a first sale doctrine does not mean that you can do anything you want with the contents of the DVD or CD. One of the fallacies we have seen with respect to the RealDVD product is that people believe because they own a copy of a DVD they have the right to copy it as many times as they want. People understand that it is illegal to photocopy a book they own for someone but do not understand that they cannot legally copy DVDs or even CDs. Part of the problem, of course, is that the music industry did nothing to prevent the copying of CDs, i.e. they did not use DRM (digital rights management) so it is easy to "rip and burn" a CD. DVDs do have copy protection and although you can find a program on the internet (typically with tasty viruses attached) to circumvent, copyright law in the form of the DMCA (Digital Millenium Copyright Act) makes in illegal to do so.
On the other hand, I do not see the viability of a class action lawsuit here. How is the class damaged, given that Amazon is returning the fee paid for the retrieved e-books? The teenager suing in Seattle claims his notes on the Orwell book are now useless since they are not connected to the e-book. Please. Even if they were useless, what is that worth? Must we be compensated for every inconvenience and lost time in this society. Amazon says that they will not do a recall again so what is the point of clogging the courts with litigation seeking an injunction?
The views expressed herein are my own simple ramblings and not necessarily the views of my employer or anyone rational. As any good lawyer can, I will talk out of the other side of my mouth if my company were ever to "pull back" its digitally distributed content.