It’s not an indication of guilt in a legal sense, but non-liable parties often become less rational about the financial stakes when they believe the law is on their side, even if only to protect their reputation. At least in my experience. Anecdata, not a lawyer, etc. But I have been a recipient of a nontrivial settlement larger than negotiators were planning to offer, where the previous case history was in my favor. And I have seen the opposite play out when the same other party apparently sincerely believed they were in the right.
Settling is generally legally neutral, but it’s not inherently exonerating in a social sense either.
Settling is generally legally neutral, but it’s not inherently exonerating in a social sense either.