The privacy scandal ridden Cambridge Analytica has filed for Chapter 7 bankruptcy in the United States late on Thursday citing drop in business.
The political consultancy was formed in 2013 with an initial focus on the US elections. At the time the company received $15 million backing from Mercer and a name chosen by former Trump White House adviser Steve Bannon media reports have claimed.
The company was hired by President Donald Trump’s U.S. election campaign and according to allegations it improperly used data of 87 million Facebook users beginning in 2014.
The petition to file bankruptcy was submitted at the U.S. Bankruptcy Court Southern District of New York and was signed on behalf of Cambridge Analytica`s board by Rebekah and Jennifer Mercer, daughters of billionaire Robert Mercer. Cambridge Analytica LLC listed assets in the range of $100,001 to $500,000 and liabilities in the range of $1 million to $10 million.
Facebook has faced multiple investigations in the United States and Europe over its handling of personal data of users, hurting shares of the Mark Zuckerberg-led company.
Zuckerberg has appeared before U.S. congressional committees to testify on data privacy and will meet leaders of the European Parliament soon.
Facebook said on Monday it has suspended around 200 apps in the first stage of its review into apps that had access to large quantities of user data before the company restricted data access.