People do fear the unknown, but there are also plenty of examples of unintended consequences to warn us of how bad things can happen from supposedly good ideas. Lawsuits from sick people is way too late. For example, look at the things that happened with thalidomide. People thought it was safe to take for morning sickness, and ended up with deformed babies. It's not the things we can think of to worry about, but the things we can't imagine.
And tobacco companies have known that their product has had cancer causing effects since the 50s, but the product is still being sold. It's very much consumer beware. There's a warning on the side of the packages, but it's still being sold and people still buy. How long do you think the bad effects from genetically modified foods will be known for before anything would be done to fix it, if that would even be possible?