This shouldn't need to be the case; emulation is legal and has been tried by the courts in several jurisdictions.

Sucks that laws like the DMCA make it illegal to bypass encryption for the sake of emulation or other fair use, so the legality of emulation isn't really "enough" in the face of even rudimentary protections.

The nice thing about loving on a global society is that this can still be legally pursued elsewhere and we can all benefit. (Or coordinated/shared on the dark web, which can be untraceable even for those living in justifications where it might be illegal.)

In this case, they'll be fine. They made a LLC and didn't take any personal liability in the settlement. They can just declare bankruptcy and fold.