Taxation from Selling Legal Claim

Hello - I recently won a securities related lawsuit. I sued large publicly traded company as an individual. The origin of the lawsuit is a breach of contract relating to securities which I held in my personal brokerage account. This is not a class action lawsuit. I sued on a contingency fee arrangement. The lawsuit will likely be appealed, and I have not received any settlement or judgement proceeds.

To avoid the "plaintiff double taxation" trap, I am considering selling my claim to a legal settlement to a business which specializes in litigation financing.

How is income from the sale of the legal claim categorized? Solely by way of examples, if I sell a a legal claim with a gross $2M settlement value to a business for $1M, how will the $1M income to me be taxed?

My CPA does not know, and I will be hiring a settlement tax attorney in due time but I wanted to get further understanding while I look for one.

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