SCL Elections and its offspring data analytics firm, Cambridge Analytic (CA), have filed applications to commence insolvency proceedings in the United Kingdom that will also affect operations of certain SCL affiliates.
TheNewsGuru reports the Company is immediately ceasing all operations and the boards have applied to appoint insolvency practitioners Crowe Clark Whitehill LLP to act as the independent administrator for Cambridge Analytica.
CA made this known in a statement, and also said parallel bankruptcy proceedings will soon be commenced on behalf of the firm and certain of the Company’s U.S. affiliates in the United States Bankruptcy Court for the Southern District of New York.
Giving reasons for the shutting down of operations, the Company said it has lost customers and suppliers in the wake of numerous accusations levied against it.
“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,” the statement by CA read.
“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.
“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,” the statement further read.
Both SCL and CA have continued to deny the numerous accusations levied against them, stressing the suggestion that CA was somehow involved in any work done by AggregateIQ in the 2016 EU referendum is entirely false.
CA, however, confirmed in 2014 and 2015, it subcontracted some digital marketing and software development to AggregateIQ, and expressed pleasure The Guardian acknowledging AggregateIQ has never been a direct part of CA.
“And the Guardian also apologised on April 1st for incorrectly “suggest(ing) that AIQ secretly and unethically co-ordinated with Cambridge Analytica on the EU referendum.
“We are pleased that @guardian has finally acknowledged that AggregateIQ has never been a direct part of Cambridge Analytica nor been the Canadian branch of SCL,” CA tweeted.
TheNewsGuru reports Facebook had confirmed to parliament that CA spent no money on ads on their platform for the EU referendum.
CA also debunked it has never received Twitter data from GSR or Aleksandr Kogan, and has never done any work with GSR on Twitter data.
“GSR was only ever a contractor to Cambridge Analytica and we understand it did work for many other companies,” CA stated.