Actually it is quite common for a corporation to settle out of court even when they feel confident that they would win a civil suit.
Why would they do that? Fighting a lawsuit of this nature is a lose-lose for the corporation. They will spend money on lawyers fees for a trial that will likely last for years and their corporate name will be dragged through the mud of an open trial.
If they win the court case their reputation is still damaged and in all likelihood they will not be able to recoup their legal costs from the plantiff.
It's in the best interest financially of the corporation to let their insurance company pay a bargained settlement then slap a gag order to prevent anyone from talking about it, thus reducing the likelihood of copycat lawsuits.
Just my $.02
|