Cambridge Analytica to shut down in data scandal aftermath

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(WAND) – A political research firm is declaring bankruptcy after a data collection scandal.

Cambridge Analytica says accusations that it improperly collected data from nearly 87 million Facebook users ended up costing it most of its customers and suppliers. As a result, CNBC reports it will shut down.

“Over the part 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.  

CNBC also reports hidden cameras caught leaders at Cambridge Analytica talking about possibly using ex-spies, bribes, sex workers and fake news to find more votes for candidates. The network says recently fired CEO Alexander Nix was one of those people on camera.

Cambridge Analytica hired third-party investigator Julian Malins, who it says found employees at the firm “acted ethically and lawfully”. Cambridge said Wednesday that his work discovered the data accusations were not “borne out by the facts”.

The company says a “siege of media coverage” cause its clients to leave.

“While this decision was extremely painful for Cambridge Analytica's leaders, they recognize that it is all the more difficult for the Company's dedicated employees who learned today that they likely would be losing their jobs as a result of the damage caused to the business by the unfairly negative media coverage,” Cambridge Analytica said. “Despite the Company's precarious financial condition, Cambridge Analytica intends to fully meet its obligations to its employees, including with respect to notice periods, severance terms, and redundancy entitlements.”

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