May 2, 2018 2:04 pm
Updated: May 2, 2018 4:46 pm

Cambridge Analytica declares bankruptcy, will shut down following Facebook scandal

WATCH: Cambridge Analytica announced Wednesday it would be shutting down and was declaring bankruptcy, only months after it became the centre of the wide-scale Facebook data scandal involving the improper use of 87 million Facebook users' data.

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Cambridge Analytica announced Wednesday it is declaring bankruptcy and shutting down.

The consultancy firm was at the centre of this year’s Facebook data scandal.

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The controversy over the improper use of data on 87 million Facebook users by Cambridge Analytica in U.S. President Donald Trump’s 2016 election campaign has hurt the shares of the world’s biggest social network.

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It has also prompted governments around the world to launch investigations.

In the aftermath of the scandal, both Facebook and Cambridge Analytica have been heavily criticized.

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Facebook has tightened its privacy rules, and taken several steps to make its policies more transparent.

Cambridge Analytica, however, denied any wrongdoing. But the British firm suspended CEO Alexander Tayler in April amid investigations.

READ MORE: What to do if you’re caught up in the Cambridge Analytica scandal

The firm has also said it is committed to helping a U.K. investigation into Facebook and how it uses data. But U.K. Information Commissioner Elizabeth Denham said in March the firm failed to meet a deadline to produce the information requested.

Denham said the prime allegation against Cambridge Analytica is that it acquired personal data in an unauthorized way.

— With a file from Reuters, The Associated Press

© 2018 Global News, a division of Corus Entertainment Inc.

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