I read about this.
A. The MPAA will never see a dime of this money if this dude files for bankruptcy.
B. There are still giant public trackers with all kinds of pirated content like pirate bay and isohunt, so I'm not sure how resounding a victory it is for the MPAA.
C. California (home of RIAA and MPAA) is a bad deal, piracy and distributing pirated content was recently added to the list of public nuisance crimes in LA and is punishable with fines up to $1,000 per copyright violation and jail time.
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