I was involved in a medical related class action lawsuit which was settled and I received an award. Does this count as a YES answer to item 28 on the SF86?
In the letter of the law yes, in the spirit of the law, no.
Personally, I doubt I would list it but it won’t hurt if you do.
I was part in a situation like you mentioned. Hefty payout which needed to be reported - I think it’s anything over $10,000 needs to be.
It might be best listed in the finance section or possibly the civil court section. This could deescalate a financial extravagance concern.