Data firm embroiled in Facebook scandal to close
NEW YORK >> Cambridge Analytica, the Trump-affiliated data firm at the center of Facebook’s worst privacy scandal in history, is declaring bankruptcy and shutting down.
The London firm blamed “unfairly negative media coverage” and said it has been “vilified” for actions it says are both legal and widely accepted as part of online advertising.
Cambridge Analytica said it has filed papers to begin insolvency proceedings in the United Kingdom and will seek bankruptcy protection in a federal court in New York.
“The siege of media coverage has driven away virtually all of the company’s customers and suppliers,” Cambridge Analytica said in a statement.
Facebook said it will keep looking into data misuse by Cambridge Analytica even though the firm is closing. And Jeff Chester of the Center for Digital Democracy, a digital advocacy group in Washington, said criticisms of Facebook’s privacy practices won’t go away just because Cambridge Analytica has.
“Rather than rejoicing that a bad actor has met its just reward, we should recognize that many more Cambridge Analytica-like companies are operating in the conjoined commercial and political marketplace,” Chester said.
In recent months, executives at Cambridge Analytica and SCL Group have moved to created a new firm, Emerdata, based in Britain, according to British records.