Unfortunately a settlement doesn't really show you anything definitive about the legality or illegality of something.

It only shows you that the defendant thought it would be better for them to pay up rather than continue to be dragged through court, and that the plaintiff preferred some amount of certain money now over some other amount of uncertain money later, or never.

We cannot say with any amount of confidence how the court would have ruled on the legality, had things been allowed to play out without a settlement.