Categories Technology

Cambridge Analytica shutting doors; cites irreparable damage from Facebook scandal

British data analytics firm Cambridge Analytica (CA) has decided to close its operations in the U.K. and the U.S. and file for bankruptcy after suffering a huge loss of reputation from the Facebook (FB) data scandal. The firm claimed that the infamy resulting from the extensive media coverage of the incident has alienated all its customers and suppliers making it difficult to continue doing business.

After allegations emerged that Cambridge Analytica misused the data of around 87 million Facebook users to influence the 2016 U.S. Presidential election and Brexit, both firms found themselves in a political quagmire. Cambridge Analytica’s London offices were raided with the enquiry moving on to Facebook along with several other companies.

Cambridge Analytica maintains that it followed all the standard rules applicable to its business and that it had deleted any data obtained through unethical means. However, the effect of the scandal on the business was too huge for it to survive any longer.

British investigators said they would continue their investigations against Cambridge Analytica and keep an eye on any successor companies that follow it. Former CA executives are said to have formed a new data company called Emerdata. There are also calls for a criminal investigation into the entire incident to avoid any loopholes.

It is not clear as to what will happen to the data collected by CA but it is unlikely that the company will be allowed to do away with it, especially in the U.S. where it is illegal to erase records in a bankruptcy filing.

Most Popular

Tyson Foods (TSN) Q1 2023 Earnings: Key financials and quarterly highlights

Tyson Foods Inc. (NYSE: TSN) reported first quarter 2023 earnings results today. Sales rose 2.5% year-over-year to $13.2 billion. Net income attributable to Tyson was $316 million, or $0.88 per

After weak start to 2023, Apple (AAPL) sees some bright spots

Apple Inc. (NASDAQ: AAPL) this week reported its first revenue decline in more than three years, even as the high inflation continues to squeeze customers’ spending power. Sales of the

Earnings: Qualcomm (QCOM) Q1 profit falls on lower revenues

Chipmaker Qualcomm, Inc. (NASDAQ: QCOM) has reported lower earnings and revenues for the first quarter of 2023. The company also provided guidance for the second quarter of 2023. At $9.5

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top