Despite your attempt to frame these as equivalencies, they are not.
Your first assumption is that both scenarios will be reviewed by the entity (“person or business”) only in economic terms, and that those making the decisions have neither personal nor professional moral scruples about taking/avoiding some action that will cause harm to someone/something else. So even the possibility of outrage on the part of society in general or consumers in particular will be analyzed entirely from a profit and loss perspective. I am willing to accept that this is possible, but frankly I see it more as a feature of Libertaria than our present system. Libertarianism not only allows but by this philosophy actually encourages entities (me on my personal property or a multinational corporation with world-wide impact) to do whatever they want to generate an immediate profit, and dare anyone who might be harmed to “sue me!” I suspect this very feature is what so many of us non-Libertarians object to so strongly.
But even if everybody really is motivated strictly by selfish interests, the practicality of the two scenarios is quite different.
I (a company I once ran) have been subject to lawsuit, and to government regulation including an IRS audit. Given my druthers, I’ll take the lawsuit any day. I can stall, I can delay, I can enlist “experts”, I can commission studies, I can subpoena the opposition, and pull every possible legal trick to avoid or at least postpone that “million dollar judgment”. If my budget is large enough, and given the stakes in your hypothetical I think it would be, I can outspend and outlast pretty much any plaintiff, especially one who is suffering harm. And even if I lose, the actual amount of the award can be further litigated. The plaintiff is quite likely to be long dead and buried before finality is reached in the lawsuit. And meantime I’m still making money, if not off of that plaintiff then off all the others being harmed who haven’t become plaintiffs yet. After all, even a million dollar judgment in favor of poor Charlie doesn’t prevent me from continuing the same course of action, making the same profit, while harming Dave, Ed, Faith, Greg, Henry, Isabel, Jon…..
As for the regulating agency, not so much. I can use all the same techniques, and incur all the same costs of so doing. But while I am fighting this protracted fight the regulator will be tying my operations up with endless strands of red tape, affecting not just the specific product or department accused of transgression but every other department and every other profit center in my business. The bureaucrats will want my records, my hard drives, my microfiche, my employees for interviews, and then they’ll lose the results and want the same all over again. They may even seek (an action I’ll have to defend against separately at additional expense) to block me from continuing the subject profitable activity while the matter is pending, and if successful, I may continue the fight but without an offsetting income stream. Once started, such a “regulatory action” doesn’t get tired, doesn’t get bored, doesn’t think in terms of profit or loss, and can drag on, continually interfering with my business, to the point that I will be more than happy to cease and desist, and pay the damn fine, just to get the investigators out of my offices so I can do some other work.
As a business person (once upon a time) I would go to pretty much any length, take or not take pretty much any action even at the cost of short term profits, even (shudder, cringe) deal with the regulator’s requirement for forms and reports, to avoid entanglement with their enforcement branch. This is why regulation (reasonable, well thought out regulation) is superior in positive societal effect to Libertarian “so let ‘em sue me!” philosophy.
ETA - Fear Itself said much the same thing, but more succinctly.