Where does it say they admitted culpability?
This is what they said:
We recognize, however, that this is a close case,
The decision to settle was the best compromise to protect taxpayer resources.
This settlement was the most efficient resolution of what would be lengthy and expensive litigation of a strongly disputed claim,
$40,000 was cheaper then fighting it, pure and simple.
Your Right! cause it would have been much higher if it gone to trial.