I wouldn't get a $377 settlement for defrauding the government $500, but apparently you can obtain a $377M penalty for defrauding the government $500M. In fact, I would not be able to "settle" at all...
There's a lot of times where deals are made because the government looks at how much it's going to cost to get the full value vs the settlement price. If the cost to gain the full value is larger than the settlement, then getting the full value is actually a loss compared to the settlement. Also, the government makes deals willing to take a haircut to get some vs none. A settlement is both parties giving something, not just the accused.
