From review of the court documents, it does look like Yuan's case was weak, so I wouldn't be surprised if the settlement was favorable to MDGC. But they still had to settle, instead of winning, so it's not all good.
If this was MDGCs/Val's only problem, it would be something to celebrate. Unfortunately, the focus lands squarely back on the MDGC scam (and of course the other judgments, liens, etc).