Lots and lots of businesses went "belly up" in the past few years, so I'm not surprised one of the "go to" crate engine builders did too. The pandemic killed more than a million people in the US too.
I got curious and checked up on my engine builder, FE Specialties. Looks like Tom Lucas is still in business, but moved his operations from Sacramento, CA to Chiloquin, OR, which looks like the middle of nowhere. But he's still in business.
And if we're talking about the morality of establishing an LLC for your business, then let's talk about the morality of filing a frivolous lawsuit.