Cambridge Analytica, the UK company which was recently at the centre of an international privacy scandal, has revealed information about its financial condition for the first time after it and a related company, SCL USA, filed for bankruptcy in the US. Documents show that a web of companies related for the now-defunct Cambridge Analytica, including its parent SCL Group, have filed for bankruptcy after they were involved in the Facebook controversy.
Cambridge Analytica said it had assets worth between $100,000 and $500,000 and liabilities of $1 million to $10 million in a Chapter 7 bankruptcy filing in New York. Documents revealed that other linked businesses, including SCL Analytics, SCL Commercial, SCL Social, and SCL Elections, have “a bankruptcy case or similar proceeding” filed at the High Court in London. As per a Chapter 7 bankruptcy, company assets are liquidated under the oversight of a trustee to pay back creditors.
A source familiar with the situation said some employees of Cambridge Analytica have been told they will not receive redundancy payments. The company revealed in a statement this month that it intended “to fully meet its obligations to its employees, including with respect to notice periods, severance terms, and redundancy entitlements.” It said it had committed no wrongdoing in its involvement in the Facebook data leak and had simply followed standard online advertising practices. Cambridge Analytica has now stated it ceased operations and started proceedings toward a bankruptcy filing, which are completed.
It said, “Over the past several months, Cambridge Analytica has been the subject of numerous unfounded accusations and, despite the company's efforts to correct the record, has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both, the political and commercial arenas.”
