If you have been injured in a lawsuit, you may be wondering if you should keep your lawsuits settlements. A lawsuit settlement Qui tam lawsuit is meant to make you whole, so the at-fault party has to pay compensation. But if you’re paying taxes on the settlement, you should be aware of the tax implications. In this article, you’ll learn about the tax implications of lawsuit settlements. Listed below are some tips to help you understand how much tax you’ll have to pay on the money you receive.
Tax Implications of Lawsuits Settlements
Several lawsuits are related to defective medical equipment. One such case involves a defective breast implant made of silicone gel. The silicone gel was linked to several autoimmune and connective tissue disorders. Dow Corning, which made the implants, was one of the companies that agreed to settle the lawsuits.
The settlement, however, was unsuccessful because the number of claims far exceeded the company’s expectations. Another case involves a pharmaceutical company. In 2016, Bristol-Myers Squibb agreed to pay $3.4 billion for the defective drug Acthar Gel.
Another example of a large-scale settlement is the $7.5 billion Visa-MasterCard settlement. In 2007, the US Supreme Court decided to close a case involving a settlement between consumers and businesses. The court ruled that the settlement was unfair to some retailers.
The Supreme Court also squashed a class action oil spill lawsuit in 2008. This lawsuit, originally worth $5 billion, was slashed to $1.5 billion. Class-action lawsuits have a long history of exceeding billion-dollar limits.
Next PagePrevious Page