Cambridge Analytica shuts down after elections scandal

Cambridge Analytica, the firm embroiled in a controversy over its handling of Facebook user data is shutting down immediately after suffering a sharp drop in business, the company has said.

Its British parent SCL Elections Ltd, will also be closed as the firm begins bankruptcy proceedings.

This comes after a loss of clients and mounting legal fees resulting from the scandal over reports the company harvested personal data about millions of Facebook users beginning in 2014.

“The siege of media coverage has driven away virtually all of the Company’s customers and suppliers,” the statement said.

“As a result, it has been determined that it is no longer viable to continue operating the business, which left Cambridge Analytica with no realistic alternative to placing the company into administration.”

Allegations of the improper use of people’s data by Cambridge Analytica, has hurt Facebook shares and prompted multiple investigations in the U.S. and Europe.

Cambridge Analytica was hired to run President Donald Trump’s 2016 election campaign.

“Over the past several months, Cambridge Analytica has been the subject of numerous unfounded accusations and, despite the company’s efforts to correct the record, has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas,” the company said in a statement.

During a recent interview with CNN’s Christiane Amanpour, President Uhuru Kenyatta denied allegations that the company was involved in influencing Kenya’s 2017 elections.