The phrase in the title is a common trope that comes up when VPN services are discussed. While this statement is technically correct, it can be misleading, as it implies that all providers handle law enforcement requests and prepare for worst case scenarios similarly, so their conduct cannot be a differentiating factor when you evaluate them.
And here I thought companies can’t go to jail. Apparently that only applies to the companies who aren’t run by the lizard people or the kids popular with the priests.