They didn't side with the users because they gave out some information to cops who had no legitimate need for the information. Why do I say that? Because the cops and the courts work for the government. If the cops can't get a warrant from a judge who gets paid by the same city/county/etc. that's strong evidence they had no legitimate need for the information.
They're fishing without any real suspicion. It's nice to see a company stop them from sticking their noses where they don't belong, even if the line wasn't drawn soon enough.