A settlement does not have to be an admission of wrongdoing. Most settlement agreements contain a statement that the settlement does not constitute an admission of wrongdoing. This is done to help protect the settlor’s reputation. The example depicted in this article was of a drug company accused of altering the article of a well-regarded pediatrician, so that the article understated the risks of a powerful antipsychotic drug. This drug was used to treat children with behavioural problems. As a result, the company was sued by many individuals.

The U.S. government announced that the company would pay $2.2 billion (U.S.) in fines and settlements. These settlements and fines were to resolve the federal civil and criminal investigations. However, the company stated that the civil settlements were not an admission of wrongdoing.

Read the article here.

Takeaway:

• To settle a dispute does not mean any party admits to a wrongdoing. This makes settlement an even more attractive solution for disputes.