They couldn't find anything for her to do? Hard to believe, but if there's a reason not to fire her then then pay her the money she's owed and stop demanding she show up. Making someone come in with no tasks assigned is fun for a week and quickly turns into punishment detail. Putting someone on punishment detail because you're not allowed to fire them is Bad.
Unless she was allowed to stay home, in which case I take most of that back and it falls on her to go outside and find something to do. I can't find any articles with enough detail. But I'm still skeptical they actually couldn't find a job for her to do. It was 'just' paralysis on one side.
If a person's now disabled, what can a company give them to do profitably, that isn't already optimized, automated or offshored?
There's plenty of civil servants whose jobs are just moving one paper from one room to the next, just to keep more useless people employed that nobody would hire in the private sector. But this doesn't really exist as much in the private sector.
If I found the right article, the disability is epilepsy and paralysis on one side.
Which mean she can do pretty much any office job fine. She already was doing office work, so the disability should not have changed things all that much. I'm sure she typed slower, but that can be worked around and mitigated.
Honestly, I doubt it. If you show up to an interview of "any office job" with "epilepsy and paralysis on one side" nobody will hire you simply because you won't be as productive as those without such disabilities.
Also, "epilepsy and paralysis on one side" is the legal medical diagnosis, but in practice the impact can be much greater, especially with age, which is why ageism is a thing even among people who are legally in full health because in practice your body isn't the same like when you were 19-25.
She doesn't need the equivalent of "moving paper from one room to the next". She lost some number of dollars per hour worth of productivity, but it sounds like she was still capable of being reasonably productive.
It's called "mise au placard" and it's illegal. It's a technique to get people to quit by themselves, so companies don't have deal with the hassle of firing them. The lawsuit is 100% justified.
It's also very common in Japan.
If she had been hired after, it would have taken time but she would have been found unfit for work (she had epilepsy and hemiplegia), her contract terminated, and she would have most likely received a handicap pension instead.