Cambridge Analytica Ceases Operations Amid Massive Facebook Data Scandal
Cambridge Analytica shuts its doors immediately and files for bankruptcy following severe backlash over the unauthorized harvesting of Facebook user data. The firm blames negative media coverage for driving away its customers despite claiming its actions were legal and ethical.
Cambridge Analytica immediately ceases all operations and begins filing for bankruptcy following a massive controversy surrounding the unauthorized harvesting of Facebook user data. The British firm, which works for President Trump's 2016 campaign, states that relentless negative media coverage drives away virtually all of its customers and suppliers, making it impossible to continue business.
The company releases a report denying any wrongdoing and insists its employees act ethically and lawfully. An investigator hired by the firm claims the exact number of affected Facebook users remains unknown and argues that the harvested data ultimately proves useless, contradicting Facebook's estimate that the breach impacts up to 87 million people.
This shutdown follows a damning undercover investigation by Britain's Channel 4 that shows CEO Alexander Nix discussing the use of deceptive tactics like honey traps to target political opponents. Although the internal report dismisses Nix's comments as merely hypothetical examples, the resulting public outrage permanently destroys the firm's reputation and client base.