The London-based analytics company Cambridge Analytica is shutting down operations effective Wednesday, following the massive Facebook data breach scandal.The firm was accused of improperly obtaining personal information on behalf of political clients.
The company denies any wrongdoing but says that the negative media coverage has left it with no clients and mounting legal fees which have forced it to resort to closure.
"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," the company said in a statement.
"It has been determined that it is no longer viable to continue operating the business," the company, accused of misusing tens of millions of Facebook users' data, said in a statement.
The company was hard hit by the legal fees over the Facebook investigation and was losing clients, the report quoted a person familiar with the matter as saying.The employees have been asked to return their computers.
"This doesn't change our commitment and determination to understand exactly what happened and make sure it doesn't happen again," a Cambridge Analytica (CA) spokesperson said.
The development followed the suspension of its CEO Alexander Nix in March after he was caught on record suggesting unseemly practices to influence foreign elections.Facebook confirmed the charge in April and informed that the data of a total of 87 million users was used without authorization by the data firm.
The app collected data on tens of millions of people and their Facebook friends, even those who did not download the app themselves.
Known for its with US President Donald Trump's 2016 Presidential campaign, Cambridge Analytica was recently alleged to have influenced the 2014 general elections in India as well.
OneIndia News (with agency inputs)