There are laws, there are insurance companies.

In the worst case, insurance company will represent you in the court, you pay the deductable.

The chances are that landlords did all the due diligence, he will not incur any liability.

For tenants to win the case, he will need to quote correct law, but what law he can use to fight against landlords who did his homework?

With all due respects, I think your company settle the cases just to avoid expensive lawyers fee. And Tenants sue your company just because they believe big company has big money. :)