It's in the health plan, and if they were given money for the medical expenses, then sued and got money to pay the medical expenses, they got double-paid. The contract states this, and they should have understood it.
It's not "mean" or "unfair" it's business.
I think the fact that they continually refer to her slain son to gain sympathy is rather low. It has nothing to do with what's happening at all, but they use it to gain sympathy.
While I'd like to hear that she got good things to happen for her, the fact is the contracted health plan states this in it. It's not something Walmart made up after the fact in order to "steal" her money.
Just my opinion, but geez. It's a contracted medical plan. Their lawyer screwed up in this.