I don't know what I think about the number of the settlement personally, but I do think the lawsuit was fully justified. A lot of times, when you hear lawyers suing for ridiculously high sums, even they don't think they'll ever get that much. They choose such high figures for two reasons:
1) Scare tactic. If the other person gets nervous, it can put you in a position of strength.
2) Legally, you cannot win more in a suit than you originally asked for, so they start far higher than they expect to be possible so that when it comes time for a verdict, they and their client aren't bound by a low figure (well, I would have given you 100,000 dollars, but since you only asked for 50,000, that's all I can do.)