Pullpush is an alternative and free API for reddit, this threat/ban is based on the assumption that pullpush is using the official reddit API, and I guess that its using it exclusively through a single reddit account which they just banned.

It has to do with lawyers because they are trying to make a vague legal threat i guess, Youtube made a similar demand of invidious and sent a C&D to them for violating ToS of the Youtube API which they do not use… So I dont think the lack of lawyers is the issue so much as lack of competent engineers who could explain to the lawyers that one does not need to use API to get content from a public website which requires no login to see contents.