It's only because of how the legal system works in the US, with ambulance chasing lawyers and where cases are decided on the emotions and societal moral panics of the people in the jury and the negative image such cases can cause to a brand, not if someone or a company is objectively right or wrong.

Meaning it's cheaper to pay people off even if they're legally wrong, than try to prove you are right but then deal with the bad publicity of the emotionally charged mob with pitchforks and torches who blames you for their kids dying and looks bad in the media.

Keep in mind parents of that time also blamed violent videogames like Doom for it, so it's not like they were right about who was to blame, they were just looking for retribution from anyone they could, aided by unscrupulous ambulance chasing lawyers looking to cash in.