Business

Cambridge Analytica Files For Bankruptcy In The US After Facebook Data Breach Scandal

DIVYIA ASTHANA | 0
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| May 18 , 2018 , 13:05 IST

The UK-based political consulting firm Cambridge Analytica, which was at the centre of the Facebook data breach scandal, on Thursday officially filed for bankruptcy in New York.

Cambridge Analytica on May 2 had already announced its intentions of shutting down, ceasing operation and declaring bankruptcy in the US and the UK, and Cambridge Analytica's parent company SCL Group was also reported to be shutting down.

The bankruptcy in New York was declared under Chapter 7 petition, listing estimated liabilities of between $1 million and $10 million, addressing issues raised by US creditors. Since the legal proceedings in the US are more transparent than those in the UK, the bankruptcy proceedings filed on Thursday would likely shed more light on the company's relationships and finances.

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According to a statement from the firm, it claimed that it lost clients after the Facebook data breach came to light, when it was revealed that Cambridge Analytica had obtained personal details of Facebook users to influence the US Presidential elections in favour of current president Donald Trump.

"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 firm said in a statement Wednesday.

"The siege of media coverage has driven away virtually all of the Company's customers and suppliers," the firm said.

"It is no longer viable to continue operating the business," Cambridge Analytica said in a statement.