Cambridge Analytica, the firm at the heart of Facebook's worst privacy scandal in history has declared bankruptcy. The London-based political campaign management consultancy and its affiliates blamed "unfairly negative media coverage'' and said it would cease operations immediately.
The company indicated that the board has filed papers to begin insolvency proceedings in the UK via insolvency practitioners Crowe Clark Whitehill LLP who would be acting as independent administrators for the firm. Likewise, the alleged Trump-affiliated firm will commence parallel bankruptcy proceedings in the United States Bankruptcy Court for the Southern District of New York.
"The siege of media coverage has driven away virtually all of the company's customers and suppliers," Cambridge Analytica said. "As a result, it has been determined that it is no longer viable to continue operating the business."
In a statement, Cambridge Analytica said “Over the past several months, Cambridge Analytica has 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."
In the backdrop of the alleged data leak accusations, renowned Queen’s Counsel Julian Malins was retained to conduct an independent investigation into the allegations regarding the Company’s political activities. Malins report, which the firm posted on its website, concluded that the allegations were not “borne out by the facts” and that all of the firm employees acted ethically and lawfully.
“I had full access to all members of staff and documents in the preparation of my report. … Nothing of what they heard or read resonated with what they actually did for a living,” the senior Counsel wrote.
Meanwhile, Facebook said, Cambridge Analytica's decision to close "doesn't change our commitment and determination to understand exactly what happened and make sure it doesn't happen again."