YES.
I speak from some experience.
Many years ago I was a Branch Manager/Stock Broker and we had any number of unwarranted claims made by idiot clients because they lost money. These claims went to binding arbitration and were settled behind closed doors. Sometime in the early 1990’s there was some ruling that allowed these arbitration hearings and settlements to become public. The lawyers had a field day. The number of fallacious claims went through the roof and as a result it severely hampered business and firms found it cheaper to settle a claim than fight.
I actually advised my firm to settle a $400,000 claim for $35,000 even though the client had no real basis. He claimed that he lost this money because we allowed him to place trades while he was stoned on drugs and we supposedly knew he was stoned.
Even in hindsight, I can’t say it was wrong to settle.