Its not as nefarious as you think, often its about avoiding a large legal bill for your lawyers to review all the crap before sending it in. I know when i had to deal with this a decade ago the bill for review came out to almost as much as the bs settlement offer we got from the government (which was less than half of just the projected cost of going to court to fight and almost certainly win). We settled because we couldnt afford to fight. This regulatory stuff is basically an extortion racket all around.