https://twitter.com/stephentotilo/status/1762576284817768457/
"NEW: Nintendo is suing the creators of popular Switch emulator Yuzu, saying their tech illegally circumvents Nintendo’s software encryption and facilitates piracy. Seeks damages for alleged violations and a shutdown of the emulator.
Notes 1 million copies of Tears of the Kingdom downloaded prior to game’s release; says Yuzu’s Patreon support doubled during that time. Basically arguing that that is proof that Yuzu’s business model helps piracy flourish."
AFAIK rooted Switch consoles are used to decrypt the games and Yuzu just tries to execute whatever nonencrypted Switch binary. Unless Nintendo can prove that either the Yuzu developers themselves are behind ripping commercial Switch games or directly colluded with the rippers, they’d have a hard time to actually win. That said, regular people with normal income levels will probably just sign everything because a prolonged lawsuit is about just bankrupting them, not being ruled the win by the judge.