They will settle out of court. No way they are going to chance discovery.
I'm not a lawyer, but I have been a plaintiff in many business litigations, and proved myself to be the pro se defendant from Hell in two multi-million dollar lawsuits, from which I walked away for a mere $1,200 after two years of counter-suing and writing all my own pleadings.
Trust me, there won't be any settlement at least until the discovery phase is completed.