There are lots of reasons why a company may choose to settle early. The legal expense is obvious. What is not so obvious is the brain drain of your executive staff preparing and going through depositions, legal meetings, and the loss of focus on the real business. Been there and done that, it sux.
Legal stuff is mess for the company. However, one does walk away with a clear appreciation for a good attorney. Of course, you also want to beat the other guy's attorney with a 60 degree lob wedge.
John