This is a civil case. That means it isn't so easy to defend yourself. In a criminal case the standard is beyond a reasonable doubt. That is a fairly high standard because it means, just as it says there must be no reasonable doubt that you committed the crime for the jury to convict. That means that the prosecution actually has to prove their case, the defense needn't do anything at all if they don't. Also in a criminal trial, you get a lawyer, even if you can't afford one. Public defenders generally aren't as good as high paid lawyers, but they are lawyers none the less who can help you navigate the complexities of the legal system.
A civil case has a much lower standard, the preponderance of the evidence. More or less that means whoever has the more convincing argument. There can still be reasonable doubt, so long as one side seems to present better evidence, then they win. Also, you aren't given a lawyer, you have to pay for one yourself.
So even if you are innocent, paying the extortion money can be the easy out to take. It'd be real hard to mount a defense for $30,000, much less $3,000. Even if you do, they could still win.
That's the problem here. It isn't one of these "Oh you are innocent so you have nothing to worry about." No, you have a lot to worry about. Either you pay a ton of money to hire a lawyer to try to defend yourself, or you do it all by yourself and almost certainly lose just because you don't understand the legal system.