So, what happened? Did your husband find out what was going wrong? Any solution found? Did the doctors admit their mistake?
Sounds a lot like Trapped Penis to me. Its a condition that is a result of circumcision. It usually only effects baby boys, its when scarring or adhesions from a circumcision trap the penis in the fat pad. When the wound heals, it heals and connects to the wrong area, and gets "trapped" under the skin.
Here is a link to a site talking about a number of conditions involving the penis, although it talking about infants. But this might be a good place to start:
http://www.drgreene.com/21_1125.html
Sadly, the only cure I have seen for trapped penis is further surgery.
What these doctors did was wrong, they made a mistake. (If your husband's condition is "Trapped Penis" it was caused by the removal of too much skin by the doctors)
Keep all your medical records, from that place, and everything your husbands new urologist says, because if he requires future surgery, or if there is a life long change in your husbands sexual capability, these doctors should pay, and it should be on their medical record for what they did.
Lets hope things dont need to get that dramatic, and this can be resolved easily.