The settlement was achieved when the boy was a minor, meaning it should have been approved by a judge. The boy's lawyer would have been retained by a parent, but would have been acting in the boy's best interests, and should have recommended to the parent that the funds be invested until he turned 18, and provision made for a structured settlement as described above. No income tax consequences, and the teenager isn't handed a big fact cheque he can't handle. I have never seen a judge approve a settlement that would simply have funds turned over at the age of majority, it's not in the child's best interests, unless it is a relatively small amount.
Structured settlement companies are highly regulated in Canada, where I have been practising law for over 20 years. Not sure what jurisdiction QuelleC is in to take issue with their business ethics.