Cambridge Analytica Seeks Bankruptcy Protection

MANHATTAN (CN) - Cambridge Analytica, the data-mining firm embroiled in a Facebook privacy fiasco, filed for Chapter 7 bankruptcy on Thursday.

The New York City-based branch of the United Kingdom consultancy firm listed less than $500,000 in assets and between $1 million and $10 million in estimated liabilities as of Thursday when it filed the bankruptcy papers.

Earlier this month, the company announced it was closing in the wake of public outcry over its alleged misuse of data from millions of Facebook users.

Though the agency worked for Donald Trump’s 2016 presidential campaign, it has insisted that none of the Facebook data it acquired was used in that capacity.

The British firm suspended CEO Alexander Tayler in April amid investigations.

Rebekah and Jennifer Mercer, the conservative daughters of billionaire Robert Mercer, signed the company’s 19-page petition to declare bankruptcy on behalf of Cambridge Analytica’s board.

Adam Harris with Schulte Roth & Zabel signed the form as attorney for the debtor, and Judge Sean H. Lane has been assigned to preside over the case.

Filed in the U.S. Bankruptcy Court for the Southern District of New York, the petition shows that several affiliates including SCL Analytics, SCL Commercial, SCL Social and SCL Elections have filed similar bankruptcy proceedings at the High Court in London.

The filing also reveals that the Cambridge Analytica has been referred to as Anaxi Solutions Inc.

Earlier this week, Christopher Wylie, former Cambridge Analytica research director testified before the Senate Judiciary Committee that he company conducted “voter-disengagement” efforts meant to keep minority voters at home during the 2016 presidential election.

Facebook CEO Mark Zuckerberg apologized to a joint congressional committee in April for his company’s allowing Cambridge Analytica to gather the personal information from 87 million users to try to influence elections.

In prepared remarks, Zuckerberg said Facebook was founded in a spirit of idealism, but Cambridge Analytica took advantage of the firm, lying to Facebook executives at “every turn.”

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