You're conflating two different things. "Guilt" and "innocence" only apply to criminal law. Settling a case only happens in civil courts.

Criminal cases are brought by the government (district attorney), and cannot be settled. The punishments for criminal offenses are fines, community service, and/or jail time (possibly other conditions such as required addiction counseling). If someone is found guilty, they owe their fine to the government. The closest thing to "settling" a criminal case is to take a plea deal, meaning you do admit guilt, usually in exchange for a lesser sentence than you might receive if found guilty at trial. In some cases, the DA might also offer to drop charges if you give them information which leads to a more serious case against someone else.

Civil cases are brought by a third party, and the punishments are generally limited to money. If someone loses a civil case, they owe money to the person who sued them. There is no crime for them to be "guilty" of. Settling a case means they made an agreement with the person suing them, who agreed to drop the lawsuit in exchange for some payment.

My informal definition of "human-level AGI," is a system whose only mistakes are indistinguishable from mistakes a human could make, given the same context.

PNG is technically lossless, but you can run images through a function which degrades their quality to improves PNG compression efficiency. The results generally aren't quite as good as JPEG compression, but they are close — much better than a totally lossless PNG photo. Search for "lossy png compression," to find several open source tools.