Cambridge Analytica Is Shutting Down and Declaring Bankruptcy After the Facebook Data Controversy

Parent compant SCL is closing in the U.K.

The company is shutting down just two months after the controversy broke. Cambridge Analytica
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The British firm at the center of Facebook’s recent data privacy controversy is shutting down.

Today, Cambridge Analytica—which was hired by both Donald Trump and Ted Cruz’s campaigns during the 2016 presidential race—announced it will file for bankruptcy in bankruptcy court in the U.S. Southern District of New York. Meanwhile, its parent company, SCL Elections, will file for insolvency in the United Kingdom while ceasing all operations in both countries.

Over the past two months, Facebook has accused the company of wrongfully using user data, which sparked an independent investigation in the UK. The revelations also led to CEO Mark Zuckerberg appearing before Congress to discuss Facebook’s data practices, along with chief technology officer Mike Schroepfer doing the same in British Parliament.

“Over the past several months, Cambridge Analytica has been the subject of numerous unfounded accusations and, despite the company’s efforts to correct the record, has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas,” the company said today in a statement.

Two years ago, Cambridge Analytica had opened an office in New York to expand beyond political advertising and into the commercial sector. The closure was first reported today by The Wall Street Journal, which cited the company’s “mounting legal fees” and a loss of clients.

@martyswant Marty Swant is a former technology staff writer for Adweek.
Publish date: May 2, 2018 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT