They gave him a way out, and he declined. In the case of Yuzu they maybe could have fought it, but this guy was also directly selling pirated switches. He's a bit more screwed.
If he was actually selling Switches loaded with pirated games after Nintendo sent a cease and desist he's an idiot. This was purely someone trying to make a buck off of people that can't figure out how to pirate a game themselves, and it just gives Nintendo more ammunition to use the legal system against the rest of us.