I just made a post about this. As others have said here, it’s quite common for a company to settle such an accusation, if the costs of going to trial would be higher than the settlement requested by the accuser. I have seen my company pay out such a settlement, even after a due-diligence investigation indicated there was no evidence of any wrong-doing by the individual she had accused.

The company simply realized that it would cost more to try the issue in court, than it would to simply pay out the requested settlement.

It may seem reprehensible to pay when you know you’re in the right. . .but if you know it’ll cost more to prove it? Remember, companies are first responsible for their bottom line.