No one likes to be shaken down, and if there was no basis to the claims against Cosby, he would not have paid out. If nothing else, paying on spurious claims creates an inducement to more such claims, with the prospect of both financial loss and damage to reputation. In addition, wealthy people tend not to have millions sitting in their checking account but instead invest their money and put it in trusts as part of their tax and inheritance strategies.
I’ve paid money I did not owe in a legal action, because my lawyers pointed out that legal fees to continue to fight the problem plus my lost time would greatly exceed my savings when I won. Not IF I won, but WHEN I won. I took their advice and paid money I did not owe. I hated to do it, but it saved me a bundle.
There are a number of good reasons people may opt to settle claims, even claims without merit.
No one likes to be shaken down...
I don't like going to the dentist,either...
...and if there was no basis to the claims against Cosby, he would not have paid out.
...but I learned long ago that failure to do so could have consequences that are acutely painful,far more painful than preventive visits.
If nothing else, paying on spurious claims creates an inducement to more such claims, with the prospect of both financial loss and damage to reputation.
And allowing a baseless claim to go to trial does what?
In addition, wealthy people tend not to have millions sitting in their checking account but instead invest their money and put it in trusts as part of their tax and inheritance strategies.
Cosby was worth a billion when gas was $1.25 a gallon and the most luxurious seaside mansion in Malibu could be bought for $10 million.