This article posted to our partner site Mondaq.com explains that confidentiality agreements are important in the context of business disputes to protect the privacy of the parties involved.
Things to consider are whether patents, trade secrets, or other proprietary information is at stake; federal or state laws; entities subject to the Right-to-Know Law, and the company’s board of directors/trustees or shareholders, etc. Agreements to keep settlement results confidential are common in the context of business disputes to maintain privacy which is often in the best interest of both parties.