The suits in question do seem to be in a sort of Nixonian dilemma: if they knew what was going on, they are guilty as sin; if they didn’t, they have truly mastered incompetence and negligence.
I can only assume that they are currently going with the story they think most likely to end in civil penalties(ideally against the company rather than them personally) rather than a trip to Club Fed.
Especially in a situation so dire that getting sued by basically everyone is more or less inevitable; a little more potential civil liability probably feels like a small price to pay; while a criminal conviction could really spoil your lifestyle.
