Cambridge Analytica protests its innocence as the company files for bankruptcy
The firm at the centre of the Facebook privacy scandal, Cambridge Analytica, this morning announced it has for insolvency in the UK with its US operations to follow.
Up to 87 million Facebook users had their data compromised by the company’s data scraping activities including up to 311,000 Australian users’.
Claiming customers had been driven away “unfairly negative media coverage”, the company still maintained its activities were legal and cited a report by British commercial lawyer Julian Malins clearing the organisation of wrongdoing.
“I had full access to all members of staff and documents in the preparation of my report,” Malins was quoted in the media release.
“My findings entirely reflect the amazement of the staff, on watching the television programmes and reading the sensationalistic reporting, that any of these media outlets could have been talking about the company for which they worked. Nothing of what they heard or read resonated with what they actually did for a living.”
The company’s management added in the statement: “Despite Cambridge Analytica’s unwavering confidence that its employees have acted ethically and lawfully, which view is now fully supported by Mr. Malins’ report, the siege of media coverage has driven away virtually all of the Company’s customers and suppliers.”
“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.”
Cambridge Analytica commence insolvency proceedings and release results of independent investigation: https://t.co/BeDLpU1gIh
— Cambridge Analytica (@CamAnalytica) May 2, 2018
Despite the company’s protestations, its actions in using data harvested from the Facebook platform resulted in the social media’s founder Mark Zuckerberg being hauled before a US Congressional committee.
The company’s founders however appear to have set up a new company, Emerdata, which Business Insider reports was set up by the chairman of Cambridge Analytica’s parent firm, SCL Group, Julian Wheatland and chief data officer, Alexander Tayler last August.
In its announcement, the company said employees would still receive their entitlements: “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.”
