Apparently the last associated income to be reported was in 2008 and possibly 2009 at best. The sale of the business was presumably reported in either of those years on a Sch D.

If the settlement occurred in 2016, there is no income to apply it to. An extreme viewpoint might be that legal expenses themselves are not in pursuit of income and therefore non-deductible. If deductible, they would be on Sch A with a 2% income reduction.

I'm assuming most of the $30K are not legal expenses. Sch E stopped reporting income years ago, so I do believe the only place to deduct would be on Sch D/8949. And even so, there would be no associated revenue/gains to report on that line item.