They took authority the didn't have and started collecting HOA fees for areas that didn't fall under their jurisdiction. The judgement bankrupted them and so they are no more.
There's good and bad. Sometimes you want someone to keep some of the homes in-line, but really there hasn't been anything that we couldn't get the city to come in and force, so it just takes more effort when needed, but I've always been opposed to an organization that mainly hires individuals that have to find infractions to justify their jobs. That's when pettiness always seems to come into play.