British data firm Cambridge Analytica is closing down its operations amidst raging controversy surrounding its dubious role in stealing social media users’ data to help political parties favourably influence the election outcomes around the world.
Nigel Oakes, the founder of SCL Group, Cambridge Analytica’s British affiliate, confirmed that both companies were closing down, reported The Wall Street Journal.
In March this year, the company had announced that it was suspending its CEO Alexander Nix and added that it had launched an independent investigation to ascertain the allegations of wrongdoing by its leadership team.
The WSJ report also added that the CA decided to close its doors because it was losing clients and facing mounting legal fees in the Facebook investigation. The firm is shutting down effective Wednesday and employees have been told to turn in their computers.
The CA scandal had adversely impacted the political discourse even in India with both BJP and Congress trading charges of having sought the help of the tainted company. The Facebook had later banned the company from its platform. Facebook CEO Mark Zuckerberg had to depose before a US Congressional committee last month to answer questions on allegations of data breach from his platform.
Union Law Minister Ravi Shankar Prasad had warned Zuckergerg, of consequences if he did not come clean on the allegations of data theft from his social media platform. Prasad also went on to accuse the Congress of having hired Cambridge Analytica to help the party in Gujarat elections.