Question
Proceeds from a law suit and taxes
Suppose that an investor has owned the XYZ stock for a long period of time. It is then taken over by the ABC company and the investor has a long term capital gain. A couple of years later, a class action suit occurs and it is determined that the ABC company did not pay enough for the XYZ company. The investor then receives money from the law suit. I claim that money is taxable as a long term capital gain. Am I right?
Note: XYZ and ABC are fictional companies that I made up.
