Ever heard the phrase "settled out of court"? A lot of lawsuits are settled even before a court clerk processes the paperwork.
A lawsuit with no paperwork filed is not a lawsuit. That’s just an agreement.
Again, you seem to be conflating lawsuit with trial.
Settled out of court does not mean the lawsuit never went to court. It means the settlement happened outside of court. Every lawsuit has to go to court, that's how you file a lawsuit. If it isn't sent to a court it's just words in a document.