AAA arbitration costs a company about $3,000 (and the costs of an attorney they hire). Some may/will pay nuisance settlements if it’s the economically rational play—even if they think the claim is bogus. Although, to be clear, this claim sounded very very legit. (Candidly, I would have pushed for a much higher settlement. But don’t blame OP for not wanting the headache).

There’s some interesting arbitrage opportunities in this space. I have the legal (and arbitration) experience. I’ve been noodling on how to marry it up with a tech-minded individual to capitalize on these opportunities.