It's a problem of 'data leakage' where the bad guys have a copy of corporate data - supposedly 4TB of personal medical information - and threaten to release it to the public which can cause all sorts of reputational or other damage.
Backups don't help much in this situation, you need to convince the attackers to delete the data they copied from your network, usually via lots of money but even then there's no guarantee they'll actually delete it and may extort you for more money in the future with the same data.
Should one trust a criminal to keep their word?