this post was submitted on 05 Mar 2024
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It reads like they have their family held hostage.
This is a few days after they hired a lawyer. I'm guessing they were told they either spend a million dollars fighting this in court or shutdown their website.
Fighting in court probably wouldn't have got them very far, Nintendo would likely just keep going until Yuzu's LLC ran out of money. Even with $30k/mo in patreon donations, totalling around $2.5m since the switch release (assuming Yuzu devs didn't eat or pay bills), it's miniscule compared to Nintendo's $15B value and lawyer army on standby.
They probably also saw what Nintendo did to Gary Bowser (he's practically Nintendo's property now) and decided this is the safest way out without having their lives destroyed, while they still have some protection under the LLC
They settled for 2.4 million dollars
Damn seems you're right: https://www.gamesindustry.biz/nintendo-and-yuzu-developer-settle-lawsuit-for-24m