This is so much their own damn fault. I have no idea what level of utter incompetency it takes to think that a cloud storage system is a safe way to store the only copy of your data. And as you said, on top of that all the warning signs were there that you need to take a backup right away.
Holy hell, I wanted to see them get this suit dismissed just to rub it into their faces what mindless idiots were in charge of this fiasco.