Cambridge Analytica to file for bankruptcy
Published 12:00 am Thursday, May 3, 2018
Embattled political consulting firm Cambridge Analytica announced Wednesday that it would cease most operations and file for bankruptcy amid growing legal and political scrutiny of its business practices and work for Donald Trump’s presidential campaign.
The decision was made less than two months after Cambridge Analytica and Facebook became embroiled in a data-harvesting scandal that compromised the personal information of up to 87 million people.
In a statement posted to its website, Cambridge Analytica said the controversy had driven away virtually all of the company’s customers, forcing it to file for bankruptcy in both the United States and Britain.
But the company’s announcement left several questions unanswered, including who would retain the company’s intellectual property — the voter profiles built in part with data from Facebook — and whether Cambridge Analytica’s data-mining business would return under new auspices.
Cambridge Analytica said the results of an independent investigation it had commissioned, which it released on Wednesday, contradicted assertions made by former employees and contractors about its acquisition of Facebook data. The report played down the role of a contractor turned whistleblower, Christopher Wylie.