Big company threatens to spend $100 million on the lawsuit to make sure they win. By outspending you they exhaust your funds and win by default. Then you go doubly bankrupt when you have to pay their legal bills.
Thus, in instances where they are objectively wrong, they lose big. In instances you are objectively wrong, you lose big. In instances where it is not black and white, where there is merit to both sides of the argument, you settle. All this is achieved with little intervention by the courts.
Note also that the "loser" factors in offers to settle. So if I offer you $10,000 to settle and you refuse and the court awards only $5,000 to you, you are the one that has to pay my legal bill, even though I am the one that "lost".
If one party wins, they do not have to pay the legal fees of the looser.
Settlement offers have no bearing on this.
If one party wins, their (reasonable) legal fees usually are paid by the loosing party. Except if the judge orders both sides to pay their own.
If you offer £10k settlement, and I refuse, and I win £5k, you’d have to give me £5k, plus pay my and your legal fees. What I don’t get to say is you offered £10k so I want that instead.