There is a way to deduct legal fees "above the line". . don't have enough info in this case but here is some info on it....   I have seen a few employment related discharge cases.. the wage part of the suits though are supposed to be on a W-2... so not sure what is going on in this case you mentioned but some of these principals may apply..  if this is the first time you have seen something like this you may want to consider getting official help from someone, but here is some general info on the topic

https://www.accountingtoday.com/news/attorneys-fees-deductible-above-the-line

https://www.americanbar.org/groups/business_law/publications/blt/2019/11/gross-recoveries/

https://www.lawyers.com/legal-info/taxation/tax-audits/are-attorneys-fees-tax-deductible.html