For control. A US employee can walk away from the sinking ship any time without too much repercussions, not the case for foreign nationals staying on company sponsored visas

> A US employee can walk away from the sinking ship any time without too much repercussions, not the case for foreign nationals staying on company sponsored visas

The Qatar school of management.

What could have they done in this situation?

Assuming that they acutally are legally in the country, they could have talked to a lawyer and try to find a new job.

and the lawyer would tell them "don't bother, just go" unless the lawyer just wants to make free money. honestly, getting H1B is tough enough already - trying to secure an extension or transfer of H1B when your first one is entangled in fraud, practically impossible.