CLOSING UP SHOP

Cambridge Analytica Shuts Down Amid Facebook Scandal

Loss of clients and mounting legal fees prompted the company to close its doors.

Cambridge Analytica is shutting down after months of scandal over its alleged misuse of personal Facebook data—and will be “immediately ceasing all operations,” according to a press release. The firm also said it would be filing for bankruptcy for its U.S. affiliates. “The siege of media coverage has driven away virtually all of the Company’s customers and suppliers,” the company said. The Wall Street Journal reported that mounting legal fees have also contributed to Cambridge Analytica’s decision to close its doors. This comes after the firm suspended its CEO Alexander Nix and announced it would be launching an investigation to see whether it had committed any wrongdoing in its campaign work. Nix was also caught offering undercover journalists posing as clients blackmail services. Whistleblower Christopher Wylie came forward with the data misuse allegations in March. The firm was employed by President Donald Trump’s 2016 campaign, and did work for National Security Adviser John Bolton’s super PAC.