It's absolutely possible to settle, as the infringement case gives the generics plenty of risk, and plenty to think about. Committed executives, committed attorneys and a strong Judge or mediator can get it done.
This is a matter between two parties. They agree, the matter no longer exists. That said, the greater the time and money expended, the greater the likelihood the judge would get grumpy. There might be follow on effects in the future before that judge.