While we're supposed to see the lawyer's actions as heartless as they don't see Robocop as a person, it makes more sense when you remember how he handled things in the end of the first movie: just before the shoot out at the steel mill, Clarence is flanked by two goons with a fourth driving their van. Despite being able to kill someone with a single shot, Robocop fires three rounds into the same guy even though those same shots could've taken out Clarence and the goons. Lewis wouldn't have been hurt and the mill would've taken less damage. The same problem happens with Dick Jones: Robo didn't need to fire that many shots and drop a former exec out the window like that. They're not only concerned about legal issues and drumming up interest in Robocop 2, but they're protecting themselves from a cyborg that could violently kill people who've pissed him off and cause collateral damage as a result.
Cain and his goon's attack on Robocop starts with Hob blowing off his right hand. It starts the same way as Murphy's death in the previous film.
Notice that in the final firefight Cain shoots several news teams as well as cops and security men. This of course is supposed to represent how reckless Cain is by shooting people indiscriminately, but that message falls a bit flat. Cain has "the best eyes money can buy" and targeting system to go with it. He shouldn't be able to miss so widely from the people shooting at him, so why would he waste shots on camera crews? There could be another reason for it. Cain shooting news people may be entirely deliberate, a "don't look at me"-reaction to the news cameras. When the rebuilt Cain destroyed his old gang, he had a touching moment with his former girlfriend, but when the conversation went in the direction of sex, Cain freaked out and killed her brutally. Cain shooting the news people may be a body image issue, instead of mere recklessness.
In spite of being part of Cain's Nuke Cult, Hob is never shown actually using Nuke. It's most likely Cain forbade Hob from taking any Nuke since he was a child.
So Murphy managed to convince his wife that he's just a machine made to look like her husband. But now the poor woman possibly believes a soulless killing machine with her husband's face stalked her and her son for reasons only it knows. That's way more horrifying than a machine that's possibly her husband driving by because he missed them. If she wasn't already going to sue before, she definitely should now. Imagine having your dead lover's face put on a killbot, then that bot stalking you. It seems like the worst possible explanation they could have given her.
Loading multi-ton mecha-Cain up with an arsenal, taking him to a press conference and then waving a drug canister under his nose. What Could Possibly Go Wrong?? Wait, Robo's turned up, lets wave his gun-safety controls under his nose.
The Old Man doesn't know that Cain is a Nuke addict; it's unlikely he even knows who Doctor Faxx even used to make Robocop 2, and even if she couldn't keep that information from him, she wouldn't have told him that their hold (or more precisely, her perceived hold) was based on feeding his habit. She's too self-confident in her own good; while she's waving the remote around she's shouting at everyone "He's harmless, he's not even armed!" She clearly didn't make the logical leap that if he was already misbehaving, he would probably go a lot farther.
Indeed, when the Old Man's working with Johnson and his lawyer to plan out the damage control, Johnson suggests throwing Faxx under the bus, saying she violated their trust. The Old Man's hesitant, given his attraction to Faxx, until Johnson points out that she picked the brain, meaning the whole thing is rightly her fault. The Old Man compliments Johnson for his good thinking.
Also, in what can only be a case of learning from previous mistakes, at least didn't arm the weapons systems this time.
How did Cain know the code sequence that would arm his weapons?
There was no code - Cain just pushes a single big, red, button then crushes the remote.