Say what?

Superstore Wal Mart is suing an employee for back medical claims after she collected $1 million in a lawsuit that left her disabled.
Read the story here.
What do you think?
One, technically, the chain has a right to ask for money back (it's in the employee contract) that she and her family used for medical bills. In effect, the family was double-dipping. But two, the spirit of the law says this: What does Wal Mart need with $200,000?
Not particularly germane to the case, but heart-wrenching: The woman's son died in Iraq and every time someone reminds her, she cries--which is partly due to her disability, because she can't remember she'd been told before.