They then "made the difficult decision to wind things down right away” which included giving zero shits about the people with whom there were preexisting contracts and obligations
I think you've misunderstood why the decision is difficult. If they cut off their clients in breach of contract, they will be liable for a certain amount of compensation. If they don't cut off the clients and collect the data, they'll be liable for a much larger amount of fines.
The decision is difficult because they both cost money.