Currently, if you're up against megacorp, you're almost literally betting the farm and you're almost guaranteed to go bankrupt because big Corp will try to make you go bankrupt before you win anything.

Loser-pays, you actually have a chance to not go bankrupt, because the big Corp will be paying. The lawyers on your side will know this and if they're able to do economic + probabilistic reasoning, they realize that even though you're out of money, big corp is their real payer and thus they can keep fighting.

Each lawyer is constantly evaluating the probability that the loser can pay and thus driving toward quick settlement.