Not just evil, it's dangerous. This is how we get prions, like the one that caused Mad Cow Disease and subsequently tainted an entire generation of British people who can't be proven not to be carriers, and forced an enormous cull of affected livestock.
This wasn't a huge surprise, punitive damages aren't dischargable through bankruptcy. It's not supposed to absolve bad actors and let them start scamming again, so if they've fucked around it's more than willing to keep letting them find out.