Season 1 Episode 5 - "No Feminism in the Champagne Room"
Truth is a defence in libel and defamation lawsuits. Why did Scarlet even considering settling, and why was Jane not informed of this avenue should she decide that's how she wants to defend her integrity and competence in the lawsuit? The exotic dancer, Morgyn Stanley, was identified only by her stage name, as requested.
They considered settling because it would have been less expensive than losing a court case (Which is always possible, even when you're "right"), less of a hassle than going to trial, and deal them much less bad publicity ("Feminist magazine is exposing strippers and then refusing to pay them damages" is a headline they definitely don't want). Companies settle all the time, and oftentimes they do it not because they're guilty, but because they don't want to deal with what's going on. Paying for the problem to go away.