There are two major things people who settle want to avoid: huge legal expenses and protracted court proceedings. Even if you are 100% in the right, a trial is always risky. You are relying on another person or people to apply the law rationally and correctly, and people are fallible. By going to court you run the risk of losing, paying more and taking a definitive hit to your reputation, after weeks and weeks of your business being aired to the public. Often the trial process can bring more unfavorable information to light that can damage your reputation.

If you settle, yes you have to pay money but it is less than if you had lost the trial, and the matter is resolved quietly and comparatively quickly with minimal legal fees (compared to the expense of a full trial). Instead of weeks of repeated coverage, there is a day or two of mentions and then the whole matter vanishes from the public conscience.

As an example, most people will remember details they heard from the Depp/Heard defamation trial for years. You probably don’t remember a major celebrity settlement from a year ago. So negotiating a settlement can be a good way to sweep the issue out of the public eye and be able to move on. For celebrities, especially those who have to rely on promoting their work, getting rid of controversies quickly can help ensure the success of their upcoming projects as well, by avoiding a long stint if negative publicity.