This feeling has a name; loss aversion.
It's a really interesting human traits. About 66% of people feel bad when someone else does well. The impact of this feeling on behavior (even behavior that is self-harming) is instructive.
The concept of "Fairness" comes into play as well. Many people have an expectation that the "world is fair" despite every evidence that it isn't. That results in "everything I don't get is unfair" whereas "everything I get I earned on my own." Someone rlse getting a windfall is thus "unfair".
I have some great news for you, then: the attorney probably took a third (more if they win an appeal).
> But is there an even better possible place to disburse the funds from these types of fines?
Oh, my mistake: I thought you meant way worse.
I'm not necessarily sure the victim(s) should get all of the punitive damages. $329 million is a gargantuan sum of money; it "feels" wrong to give a corporation-sized punishment to a small group of individuals. I could certainly see some proportion going toward funding regulatory agencies, but I fear the government getting the bulk of punitive damages would set up some perverse incentives.
I think in the absence of another alternative, giving it to the victim(s) is probably the best option. But is there an even better possible place to disburse the funds from these types of fines?