While the American legal system is a law (no pun intended) to itself, there is some merit to big payouts.
Corporates can avoid doing more than they consider necessary because it is more cost effective no to.
When they will face severe penalties - financial or criminal - this tends to get managements notice and motivate a more proactive culture.
You can't reduce pain, suffering and loss to a number - though lawyers do.
If you're prepared to reduce it to an arbitrary amount the same logic can be applied to make the eyes water instead.
Nothing is a better motivator than punishing the bottom line.