As we have previously reported here and here, “nuclear” verdicts from California juries in employment discrimination and harassment cases have become increasingly common over the past few years. Although these massive verdicts garner a lot of attention, they are only part of the story after the verdict comes in.

For many successful plaintiffs, the journey to collect these awards is fraught with numerous delays and obstacles, and the “victorious” employee’s final recovery may be only a fraction of the original judgment—if anything at all. Several key factors contribute to this outcome:

• Post-Trial Reductions: Large awards (especially single-plaintiff verdicts exceeding $10 million) may be reduced after the trial by the judge, an appellate court, or in post-trial settlement negotiations (let’s call that amount the “Judgment”).
• Attorneys’ Fees: Plaintiffs’ lawyers usually take up to 50% of the Judgment as their contingency fee, and there may be additional lawyers and law firms on the plaintiff’s side who also seek to get paid their “fair share.”
• Litigation Costs: If they’re not otherwise reimbursed, certain litigation expenses—such as deposition costs, expert witness fees, court filing fees, jury and witness fees, etc.—are all deducted from the plaintiff’s share of the Judgment.
• Taxation: At least a portion if not all of the Judgment may be taxed in the very highest state and federal tax brackets, resulting in a total tax bill from Uncle Sam and his state counterparts of...

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