The controversial issue hit company of Facebook user data leak scandal hit Cambridge Analytica files bankruptcy proceedings after a sharp drop of business on Wednesday. The company blames negative media coverage for losing its clients and facing legal fees resulting from the scandal.
Earlier, allegations have been imposed against Cambridge Analytica for the improper use of data for the 87 million Facebook users during the President Donald Trump’s 2016 US election campaign.
In a statement company talked about the reason for the shut down where they said, “Over the past several months, Cambridge Analytica has been subject of numerous unfounded accusations and despite the company’s efforts to correct the record, has been vilifies for activities that are not legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas”.
Cambridge Analytica was started in 2013 with the main motive on US presidential elections. It was backed by billionaire Republican donor Robert Mercer and targeted mainly on consumer research, data-related services on political and corporate clients and targeted advertising.
However, when Donald Trump won the election in 2016, Cambridge Analytica CEO Alexander Nix went on to find more clients for his services but after a huge blot of misusing the Facebook data, the company went on dwindling with the time and faced huge losses which can’t be compensated now.
Officially, the company was shut down on Wednesday and the employers were told to shut down the computers. As well as, it has also been removed from the reception area of its London offices.The Britain data regulator said that they would continue civil and criminal proceedings irrespective of the shutdown of the company.
A spokesperson for the information Commissioner’s office said in a statement, “We will monitor closely any successor companies using our powers to audit and inspect, to ensure the public is safeguarded”.
The company has also worked for the political action committee founded by John R. Bolton, the national security adviser and 2016 presidential campaigns of Ben carson and Senator Ted Cruz.