Justine: Pellman, Inc  settled the lawsuit out of court by paying $1 million  That Pellman settled instead of going to trial indicates their corporate leaders expected to lose in court  Simon: It' s unclear whether Pellman' s leaders expected to lose in court  But I think they expected that, whether they won or lost the case, the legal fees involved in going to trial would have been more costly than the settlement
So settling the lawsuit seemed the most cost-effective solution
If Pellman's corporate leaders had expected to win in court, then they would not have settled the lawsuit out of court for $1 million.