The students had a reasonable fraud claim here which would've given them treble damages if they won. My guess is after pressuring students to go away, Lambda S

The students had a reasonable fraud claim here which would've given them treble damages if they won. My guess is after pressuring students to go away, Lambda School (or its lawyers) realized this and agreed to settle rather than fight it in court and risk having to pay 3x as much in addition to their legal costs.