Cambridge Analytica Has Filed for Bankruptcy in the US

by Frankie Norman May 20, 2018, 7:08
Cambridge Analytica Has Filed for Bankruptcy in the US

This past March allegations surfaced that Cambridge Analytica, hired by President Donald Trump's 2016 USA election campaign, improperly used data of 87 million Facebook users beginning in 2014.

The company filed for chapter 7 protection Thursday night in the U.S. Bankruptcy Court in NY along with the U.S. arm of its consulting business, SCL Group.

The filings were expected after Cambridge announced earlier this month that it had begun bankruptcy proceedings in the United Kingdom. Remember that Cambridge Analytica was created by the Mercers, billionaire backers of both Bannon and Trump.

The bankruptcy in NY was declared under Chapter 7 petition, listing estimated liabilities of between $1 million and $10 million, addressing issues raised by USA creditors. One segment showed Chief Executive Officer Alexander Nix saying that Ukrainian girls "are very attractive, I find that works very well".

The fallout from the Cambridge Analytica case isn't over, as industry watchers expect it to lead to the adoption of new USA laws that restrict companies' use of consumer data. Nix in a BBC interview later said the allegations were "unfounded and extremely unfair".

Cambridge Analytica, the company at the centre of the Facebook storm over privacy, has filed for voluntary Chapter 7 bankruptcy in NY. Wylie said Nix and Cambridge Analytica made presentations and sent documents to Lukoil, including a white paper about Cambridge Analytica's data collection and online targeting of Americans. They say they face ongoing damages because their private data is in the hands of the company.

Facebook has accused Cambridge Analytica of misappropriating its user data by violating terms of the data agreement with Kogan, the academic researcher.

A whistleblower from Cambridge Analytica set off a firestorm in March after he revealed how information was extracted from Facebook and used to influence voters.

Zuckerberg has appeared before USA congressional committees to testify on data privacy and will meet leaders of the European Parliament soon. He said Trump's victory was one of the reasons he blew the whistle.

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