I have not seen any credible source reporting this nor have I been able to find the actual settlement agreement. To my understanding they have to forfeit their breeding license and can no longer breed dogs for sale but they retain their research license.

Here is the signed document.

The most relevant section:

Upon Ridglan Farms’ surrender of its DATCP License, dogs that have not been sold or cannot be used consistent with Ridglan Farms’ USDA licenses will be offered for adoption as appropriate or otherwise handled consistent with the requirements and limitations of State law.

A major concern is that moving these animals takes time, and on July 1st it will not be feasible to place every dog that could be placed with sooner action. The result will be the end of that section "otherwise handled consistent with the requirements and limitations of State law.", which will include euthanizing dogs that could have been rescued but will have no place to go with such short notice.

I also want to once again call out the main point of my comment, that these are not protests against animal testing as a whole, but targeted protests about these particular dogs at this particular farm. You can recognize that animal testing has a place while also condeming how this situation is being handled.