After a full 3 months I received a response to my letter asking how LCS arrived at their ridiculous settlement offer. First, they replied via email. Second, the email was riddled with grammatical errors (primarily missing words, as if someone was in a hurry to send the email). The LCS rep. tried to educate me on the difference between Rights Managed vs Royalty-Free Images, and said that Royalty-Free equivalent images that you can get at stock photo sites don't apply here. She writes that this is high-end creative content with high production costs suitable for license by large businesses.
But she never answers my question of how the settlement figure of just over $1000 was arrived at. She closes by saying LCS will not, under any circumstances, provide confidential sales data or costs incurred to an infringing party or legal rep. She attached signed proof that the photographer has mandated LCS to handle copyright compliance, a Settlement/Release agreement, a document showing what forms of payment they accept, and a signed Confirmation of Rights Holdership. Then she reduced the settlement offer by $300, payable in 15 days...

So my settlement amount has bounced around by $300 or so but still seems ridiculous at almost $800. Again, LCS has not answered my fundamental question of how they arrived at their figure, and they clearly stated they will not. Anyone have thoughts on how to proceed? Does Rights-Managed vs Royalty-Free make any difference in how someone handles a situation like this? The photo in question was taken by a well-known photographer.
I don't mind fighting this and being a pain-in-the-booty, as I have been educating myself on this site and know the chances of a suit are < 1%. But I just want to ensure I'm not overlooking something.