RoadWarrior
Registered User
Settlements are paid a lot in business disputes where both sides realize there is some ambiguity involved and that it would be expensive and time-consuming to litigate for an uncertain outcome.
Paying out big dollar hush money in response to allegations that an organization believes are senseless is not common.
You're confusing arbitration with settlements.
Arbitration is common in cases of ambiguity. There wasn't much ambiguity here. An incident happened involving 1 girl and 8 players. The video suggests it was consensual although it has no legal validation.
Only after telling her parents did the police get involved. However the police found nothing to justify criminal charges. Apparently the girl told police it was consensual and was consistent in that regard.
Despite that the parents threatened a civil lawsuit. Once civil litigation is threatened the expectation of a settlement is understood by all parties. It's not a business dispute over widgets. It's hush money in exchange for an NDA not because there was a criminal act but to save $$ in litigation and keep it away from online trolls.