Fisherman,
Do you have some special insight as to why Candace Conti didn't want her abuser to testify in court? You cannot possibly put yourself in her shoes unless you've experienced what she has. From what I have read, facing the abuser is one of the worst things that an abused person will ever do. So it is very likely that she did not want to ever see his face again and therefore came to an agreement that allowed her to not confront that lowlife scum. Her lawyer obviously thought that they had enough evidence to take this case to trial.
I do side with you that Watchtower has a legal right to defend themselves and should do so to the fullest extent possible. It also makes perfect sense from a business standpoint. As others have said, if this decision stands as it is, the Society stands to lose a lot because of the legal precedent that is set. That's the reason that they and other businesses prefer to settle out of court. They can pay out money, never admit fault, put a gag order on the plaintiff, and no legal precedent is set. It's morally wrong, but businesses (including Watchtower) are unencumbered by morals.