In recent months, America Live has been on top of an outrageous story in which California's Child Protective Services, accompanied by armed officers, showed up at a young family's home and took their sick baby after the parents were involved in a dispute with a local hospital. The state faced a strong backlash after the shocking video showed cops, with their hands on their weapons, forcing a clearly frightened Anna Nikolayev to hand over young Sammy Nikolayev to a CPS worker.

SHOCKING VIDEO: Cops Enter Home, Take Baby From Mother

Trace Gallagher had good news to report today on the case. In a court appearance in Sacramento, the Nikolayevs learned that they will no longer have to be overseen CPS.

The state is auditing its CPS division after the public outrage that was sparked by the Nikolayev case.

Megyn Kelly recalled that her "head was going to explode" after watching CPS tell the young mother that she wasn't even allowed to know where her son would be taken by authorities.

The heart surgery for baby Sammy that was at the heart of the dispute has since been performed and he is doing well. Trace said Anna Nikolayev is also pregnant with her second child.

FLASHBACK: Megyn Kelly's Interview With Nikolayev Family

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