Cambridge Analytica shutting down operations after disclosure of misusing Facebook data

Posted at 1:16 PM, May 02, 2018
and last updated 2018-05-02 14:47:36-04

The data firm that misused Facebook user data and had ties to President Donald Trump's 2016 election campaign is closing.

The SCL Group, a British affiliate of Cambridge Analytica, will also shut down, the Wall Street Journal reports.

WSJ says "a person familiar with the matter" said the company is losing clients and has mounting legal fees as a result of the Facebook issue.

Cambridge Analytica issued a news release on Wednesday announcing it is ceasing operations in the U.K. and U.S.

"Parallel bankruptcy proceedings will soon be commenced on behalf of Cambridge Analytica LLC and the certain of the Company's U.S. affiliates in the United States Bankruptcy Court for the Southern District of New York," the release states.

In his keynote address at the F8 summit on Tuesday, Facebook CEO Mark Zuckerberg addressed ongoing data privacy scandals, including election meddling issues and fake news problems. He said the company must keep a sense of optimism as it tackles the issues.

Facebook announced it will soon launch a new privacy feature that will allow users to clear their browsing history of Facebook, including what websites they have visited and what they click on.