As already mentioned, lawsuits are expensive. And if they don’t go your way, they can even get more expensive as you may have to pay the other side’s legal fees.
Also, lawsuits take forever. Even when you go through trial and get a verdict, there is still years worth of appeals coming. Even with a win, you maybe be waiting years.
Settling is far cheaper and sees much faster results, even if you are confident you will win.