It would be a waste of time to litigate a case they think they'll lose, after all. Unfortunately, once the devs included proprietary code in the application, they kind of sealed their fate.

Maybe they got a little too excited over TotK and thought they were under Nintendo's radar. Maybe they felt like they owed the community an app that could play Nintendo's highly-anticipated game practically on day one. I dunno. Either way, it was a miscalculated move, and now they're reaping the consequences.