They are not paid, once they realize there is no money to recover they stop. As there is nothing to recover they lost a lot of $ taking the case as they did not get $.
That would be absolutley great for business right?? take a case then admit they cant win
Sounds to me like you're accusing the lawyers of lying. They never said anything to the effect of "admit they cant [sic] win". I doubt they will appreciate you publicly printing such an accusation.