Taxes on Lawsuit Settlement
I believe no income taxes are due on a personal injury settlement, but a settlement for lost wages would be taxable. I also believe punitive damages are taxable. If you get a lawsuit settlement have them break it down by each type. Better discuss this with your accountant.

Also if you get reimbursed for expenses your health insurance paid for they might want their money back if you recovered in a lawsuit. They don't like one to double dip.

Best of luck in your lawsuit.