Just last week, on Tuesday, February 26th, 2024, news broke out about the Yuzu emulator team being sued by none other than Nintendo themselves, with Nintendo claiming that the emulator apparently allowed users to play certain games early (due to street dates being broken) and also allowing...
I would guess that they settled because they would go bankrupt fighting it. You have no idea if you and their legal team are in agreement, as far as I can tell. Feel free to comment with proof to refute my guess, otherwise my guess is as good as yours.