Yeah, people don't understand. Courts are only there for mediation when people can't reach an agreement. Legal aid will often advise you to settle out of court because its best for all parties involved.
"Bu, bu, but I want to prove that I didn't do it" as if fighting a lawsuit is going to prove that. Settling out of court also gives you more room to negotiate, which might include the plaintiff not being able to bring future claims against you.
She still got esentially what the lawsuit was going to grant her. Puff got to stop a lawsuit that would've been highly publicized and possibly more expensive than what he gave her.