...I am still a little surprised however that the WTS did not push down the legal line further and try and establish this case as a precedent for limiting their liability and culpability...
I honestly think Watchtower would have pushed farther if it hadn't been for the Candace Conti case a few years ago. More damage was done to Watchtower from the negative publicity and exposure than from the financial loss.
Conti was followed by the Jose Lopez (the victim) case vs Gonzalo Campos (the abuser). That case included Watchtower defying court orders which went to appeal. The trial, plus the appeals that followed, brought even more negative attention to Watchtower.
From the linked article in the OP:
The Watchtower maintains a database of alleged child abusers in congregations across the U.S. going back two decades and has violated court orders in at least three California lawsuits to hand it over to the courts.
It could provide a road map to thousands of accused child molesters living freely in communities across the country.
The same court orders that were defied previously, involving the database mentioned above, likely would have come into play in this trial too, leading to even more sanctions against Watchtower and more negative press. Watchtower will spend lots and lots of money to protect its database of child abusers.
I think the Organization is in damage control mode at this point. The financial losses are minor compared to the public thrashing they are receiving which causes a loss of both members and a great deal of money. After 4 days of trial Watchtower came to court on Monday prepared to up it's initial offer of $100,000.00 significantly, realizing their chances of winning were slim.
If I recall correctly the victim was only asking for $1.9 million, and there would have been a punitive damage phase to the trial - for failing to report child abuse in a mandatory reporting state, and for failing to properly protect the victim from further abuse after knowing about it - which could have amounted to more than the compensatory award.
It has been suggested that victim Fessler's case wasn't going well and that she decided to give in and accept the initial low offer, but I believe that is unlikely. Watchtower needs a win over which it can boast, and if it thought there was a possibility of winning it would have stuck with the trial to the end.
When the report on days 2, 3, and 4 of the trial are in we might possibly have a clearer picture of which way the trial was leaning, but at this point I believe Watchtower was prepared to get out by paying the victim a substantial amount of money.
I wonder if they are actually more keen to silence the noise than have a very public fight?
IMO, you nailed it.