Why would Keir Starmer settle a case that Labour's lawyers said the party would win? And why would he choose to spend members' dues on compensation to people who might not have been owed it?

As Corbyn says, the reason can only be political.
Firstly, Starmer is clearly hoping that the decision will draw a line under the antisemitism story once and for all.

If he decided to pursue the case, he would have been relentlessly attacked by both the Labour right and the vast majority of the media.
Secondly, if Labour had won the case, it would have completely vindicated Jeremy Corbyn and absolutely annihilated the credibility of both the Labour right and the BBC.
Since he’s been leader, Starmer has done everything he can to avoid pissing off the establishment. He would clearly much rather alienate the Labour left than those who currently hold the sway of power in the party, and placate media outlets who hold the sway of influence.
What Starmer’s decision today shows is that he holds party political posturing and placating the establishment above both the interests of Labour members and what's actually right under the rule of law.
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