The Most Expensive Lawsuit Settlements in History.

Lawsuits are a major part of the legal system, with millions of cases filed every year. But taking a case to trial can be incredibly expensive and time-consuming, which is why the vast majority of cases never make it to court.

In fact, about 95% of lawsuits in the U.S. are settled before trial, allowing both sides to avoid the uncertainty and cost of litigation. Some of these settlements involve staggering sums of money, whether from corporate legal battles or high-profile divorces.

Here’s a look at some of the biggest lawsuit settlements in U.S. history.

1. The Tobacco Master Settlement Agreement – $206 Billion (1998)

"The 1998 Tobacco Master Settlement Agreement forced major tobacco companies to pay $206 billion and change their marketing practices."

The Tobacco Master Settlement Agreement (MSA) remains the largest lawsuit settlement ever.

In 1998, four of the biggest tobacco companies—Brown & Williamson, Lorillard, Philip Morris Inc., and R.J. Reynolds—agreed to pay a historic $206 billion over 25 years.

Why?

Multiple U.S. states sued these companies for healthcare costs linked to smoking-related illnesses.

The Outcome:

✔ $206 billion settlement to reimburse state Medicaid programs for smoking-related health care costs.
✔ Stricter advertising rules, including a ban on targeting minors.
✔ Dissolution of tobacco lobbying groups that misled the public about health risks.

This settlement completely reshaped the tobacco industry in the U.S.

2. BP Deepwater Horizon Oil Spill – $20 Billion (2010)

The Deepwater Horizon explosion led to one of the worst environmental disasters in U.S. history, resulting in a $20 billion BP settlement.

The Deepwater Horizon oil spill remains one of the worst environmental disasters in U.S. history.

In 2010, an explosion on BP’s offshore drilling rig killed 11 workers and caused a massive oil spill, releasing millions of barrels of crude oil into the Gulf of Mexico.

Why?

BP was found negligent and violated safety regulations, leading to widespread environmental and economic damage.

The Outcome:

✔ $20 billion settlement with the U.S. government—the largest environmental settlement in U.S. history.
✔ Compensation for businesses, individuals, and government agencies affected by the spill.
✔ Funding for coastal restoration efforts.

This case set a new legal precedent for corporate accountability in environmental disasters.

3. Apple vs. Samsung Patent Dispute – $539 Million (2012-2018)

The Apple vs. Samsung legal battle over smartphone patents lasted years, resulting in a $539 million settlement.

The Apple vs. Samsung lawsuit was one of the biggest legal battles in tech history, centering on smartphone patent infringement.

Apple accused Samsung of copying iPhone designs and violating patents related to smartphone technology. The legal battle played out across multiple countries, but the most significant case was in the U.S.

Why?

Apple claimed that Samsung stole key iPhone design elements, including rounded icons and touch gestures.

The Outcome:

✔ A U.S. jury initially awarded Apple $1.05 billion, but the amount was later reduced.
✔ In 2018, Apple was awarded $539 million.
✔ Both companies ultimately settled their remaining disputes privately.

Although some sources incorrectly reported a $40 billion settlement, the actual amount was much lower.

4. Rupert Murdoch vs. Anna Torv Divorce – $1.7 Billion (1999)

Rupert Murdoch’s 1999 divorce from Anna Torv resulted in one of the most expensive settlements in history, totaling $1.7 billion.

Media mogul Rupert Murdoch and journalist Anna Torv were married for 31 years before their 1999 divorce, which remains one of the most expensive divorces in U.S. history.

Why?

Murdoch was accused of having an affair with Wendi Deng, whom he married just 17 days after the divorce was finalized.

The Outcome:

✔ Torv received a $1.7 billion settlement, including $110 million in cash.

The case set a new record for high-profile divorce settlements at the time.

5. Tiger Woods vs. Elin Nordegren Divorce – $100 Million (2010)

Tiger Woods’ 2010 divorce from Elin Nordegren, following his highly publicized scandal, resulted in a $750 million settlement.

Golf superstar Tiger Woods and Elin Nordegren were married for six years before their highly publicized 2010 divorce.

Why?

Woods’ infidelity scandal, involving reports of over 20 women, led to the collapse of their marriage.

The Outcome:

✔ $100 million settlement (original reports incorrectly claimed it was $750 million).
✔ Nordegren received full physical custody of their two children.

Despite the lower-than-rumored settlement, it remains one of the biggest celebrity divorce payouts in history.

6. Webster Lucas vs. McDonald's – Unverified Settlement (2014)

Webster Lucas sued McDonald's for $1.5 million over alleged racial discrimination, sparking debate over the lawsuit’s legitimacy.

The case of Webster Lucas vs. McDonald’s is often cited as an example of a bizarre lawsuit.

Why?

Lucas alleged that a McDonald’s employee discriminated against him after he asked for extra napkins, claiming he suffered mental anguish and emotional distress as a result.

The Outcome:

✔ Some reports claim Lucas was awarded $1.5 million, but no official records confirm this amount.
✔ The case remains controversial, with many questioning its legitimacy.

Final Thoughts: Why Do So Many U.S. Lawsuits End in Settlement?

From corporate legal battles to celebrity divorces, lawsuits in the U.S. often involve massive sums of money.

However, going to trial is risky, expensive, and unpredictable—which is why about 95% of lawsuits in the U.S. settle out of court.

Settlements allow both sides to avoid:
✔ High legal fees
✔ Lengthy court battles
✔ Uncertain jury verdicts

For many businesses and individuals, settling is the best financial decision, even if they believe they would win in court.

What do you think—would you fight a lawsuit in court or settle to avoid the hassle? Let us know in the comments!