Cambridge Analytica has filed for voluntary bankruptcy in the US as the company was forced to shut down its operations amidst the loss of business following the Facebook data sharing scandal. The company decided to start bankruptcy proceedings as it was left with no clients and high legal charges after the scandal broke out. The investigation into the data breach scandal will however not be impacted by the initiation of bankruptcy proceedings. Also Read - Facebook database found exposing phone number of over 400 million users
Cambridge Analytica, got the negative media coverage after it was found that the company was involved in Donald Trump’s election campaign where it is alleged that it compromised on private information of 87 million Facebook users. It is alleged that the company influenced US election results by mapping the behaviour of voters. Also Read - Facebook Discovers Security Breach, Says Accounts of 50 Million Users Affected
The company shared in the statement, “Despite Cambridge Analytica’s unwavering confidence that its employees have acted ethically and lawfully, the siege of media coverage has driven away virtually all of the company’s customers and suppliers.” Also Read - Fake News a Potent Threat to Electoral Process in India, Claims CEC OP Rawat
It added, “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,”
Facebook has also admitted that nearly 5.62 lakh people in India were “potentially affected” by its global data breach involving Cambridge Analytica.
Facebook has informed the government that “only 335 people” in India were directly affected by the installation of an app and another 562,120 people were “potentially affected” as friends of those users. Facebook has over 20 crore users in India.
There have been allegations that the company influenced the election results in India as well.
With Inputs from PTI