Facebook shares closed higher Wednesday in the US amid the announcements unveiled at its annual F8 conference. However, while the social media platform is able to largely brush off the data scandal that hit earlier this year, Cambridge Analytica hasn’t and the firm is now closing.
Facebook shares ended 1.27% higher at $176.07. The stock is also in the green in pre-market activity.
Cambridge Analytica files for bankruptcy
While Facebook is continuing to answer questions over its data handling and privacy policies, Cambridge Analytica has faced a drastic loss in business. The data specialist’s reputation has been damaged so badly that the company has taken the decision to cease trading.
“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 press release Wednesday.
“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,” it said.
The decision was also described as “extremely painful” as the business files for insolvency proceeding in the UK. Cambridge Analytic added that parallel bankruptcy proceeding will also begin soon with regards to its US operations.
Investigation vilifies firm’s claims
Cambridge Analytica also shared the results of an independent investigation into its actions and policies regarding data handling and specifically the data that is the centre of the recent scandal.
Queen’s Counsel Julian Malins has investigated the allegations against Cambridge Analytica and its own behaviour and action. Mr. Malins’ final report shows the accusations against the company “were not borne out by the facts.”
“I had full access to all members of staff and documents in the preparation of my report,” Mr. Malins said.
“My findings entirely reflect the amazement of the staff, on watching the television programmes and reading the sensationalistic reporting, that any of these media outlets could have been talking about the company for which they worked. Nothing of what they heard or read resonated with what they actually did for a living,” he said.