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After shutting down several popular emulators, Nintendo admits emulation is legal
(www.androidauthority.com)
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Yea, if I recall correctly, the Yuzu team was sharing roms of latest Nintendo releases internally and Nintendo was able to prove it. At least Jeff Gerstman podcast suggested something to that accord when reporting on it.
Yeah and the Yuzu people had made something like 4 million bucks on the project too. When you start making serious cash off of tools for piracy (and when we're talking about a current-gen console that's essentially what it is, not a tool for preservation like older emulators) then you should expect some heat to come your way.
Nintendo has always been a bit on the bastardly side of things when it comes to fan projects but I can't say that I blame them for going after Yuzu when they felt like they had a winnable case.