A products liability lawyer is a good suggestion, but I don't really believe there is a cause of action here - although at first I thought there might be. The age of the vacuum is just one factor that I feel works against a claim.
A product is not defective if it is safe for normal use. From Richard A. Epstein's
Cases and Materials on TORTS: "A product that is sold must be dangerous to an extent beyond that which would be contemplated by the ordinary consumer who purchases it, with the ordinary knowledge common to the community as to its characteristics." An example given by Epstein is that of whiskey - "Good whiskey is not unreasonably dangerous merely because it will make some people drunk, and is especially dangerous to alcoholics; but bad whiskey, containing a dangerous amount of fusel oil, is unreasonably dangerous."
If an injury results from abnormal handling of the product, then liability falls to the mishandler of the product and not to the manufacturer of the product. And I cannot think offhand of a handling more abnormal than sticking your penis in a vacuum hose.
A manufacturer is required to give directions and/or warnings on proper use to prevent the product from being unreasonably dangerous. The Electrolux probably came with a booklet with warnings (most will mention moving parts). There are some warnings, however, that do not need to be given by a manufacturer because a manufacturer is not expected to be prescient and know all ways a product can be misused.
I contend that no manufacturer of a vacuum would expect their product to be used in the manner described here.
I think the mom needs to find another way to pay the medical bills. A lawsuit is bound to be a costly exercise in futility.