Data firm Cambridge Analytica is to close down
Data firm Cambridge Analytica is to close down in the wake of its role in the Facebook information-selling scandal
- SCL Group founder Nigel Oakes confirmed that the company will close down
- The decision was reportedly made because of a loss of clients and legal fees
- Cambridge Analytica at the centre of improper use of 87m Facebook users’ data
Cambridge Analytica, the data firm at the centre of the Facebook privacy scandal, is shutting down.
SCL Group founder Nigel Oakes confirmed that the company was closing, the Wall Street Journal said.
The newspaper added, citing an unnamed source, that the decision was taken because the company was losing clients and facing mounting legal fees in the Facebook investigation.
The firm did not immediately respond to a request for comment.
In a statement, the firm said: ‘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.
‘Despite Cambridge Analytica’s unwavering confidence that its employees have acted ethically and lawfully, which view is now fully supported by Mr Malins’ report [independent investigator Julian Malins], the siege of media coverage has driven away virtually all of the company’s customers and suppliers.
‘As a result, it has been determined that it is no longer viable to continue operating the business, which left Cambridge Analytica with no realistic alternative to placing the company into administration.’
The row over the improper use of data on 87 million Facebook users by Cambridge Analytica in President Donald Trump’s 2016 US election campaign, has hurt the shares of the world’s biggest social network and prompted multiple official investigations.
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