Cambridge Analytica and parent SCL Elections shutting down

Cambridge Analytica, the data firm embroiled in a controversy over its handling of Facebook Inc user data, and its British parent firm SCL Elections Ltd are shutting down immediately, the company said on Wednesday.

SCL Elections and Cambridge Analytica will begin bankruptcy proceedings, the firm said, after losing clients and facing mounting legal fees in the controversy over reports the company harvested personal data about Facebook users beginning in 2014.

"The siege of media coverage has driven away virtually all of the Company’s customers and suppliers," the company's statement said.

"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."

Allegations of improper use of data on 87 million Facebook users by Cambridge Analytica, which was hired by President Donald Trump's 2016 U.S. election campaign, has hurt the shares of the world's biggest social network and prompted multiple official investigations.

"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," the company's statement said. 

RELATED: Here's an inside look at the Cambridge Analytica - Facebook scandal: 

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A man fixes posters depicting Cambridge Analytica's CEO Alexander Nix behind bars, with the slogan 'Our Data Not His. Go Straight To Jail' to the entrance of the company's offices in central London on March 20, 2018. The European Parliament on Tuesday invited Facebook chief Mark Zuckerberg to speak following revelations that a firm working for Donald Trump's US presidential campaign harvested data on 50 million users. Facebook has faced worldwide criticism over the claims that Cambridge Analytica, the UK data analysis firm hired by Trump's 2016 campaign, harvested and misused data on 50 million members. / AFP PHOTO / Daniel LEAL-OLIVAS (Photo credit should read DANIEL LEAL-OLIVAS/AFP/Getty Images)
PARIS, FRANCE - MARCH 20: In this photo illustration the logo of the strategic communication company 'Cambridge Analytica' is seen on the screen of an iPhone in front of a computer screen showing a Facebook logo on March 20, 2018 in Paris, France. Cambridge Analytica is accused of collecting the personal information of 50 million users of the Facebook social network without their consent and would have used it to develop software to predict and influence voter voting during the campaign American election according to the New York Times and the Guardian. Facebook share price fell by more than 5% Monday shortly after the opening of Wall Street. (Photo Illustration by Chesnot/Getty Images)
LONDON, UNITED KINGDOM - MARCH 20: A protester called Heiko Khoo sticks posters of Alexander Nix behind bars onto the windows of the offices in a demonstration against Cambridge Analytica on March 20, 2018 in London, England. PHOTOGRAPH BY Matthew Chattle / Barcroft Images (Photo credit should read Matthew Chattle / Barcroft Images / Barcroft Media via Getty Images)
Christopher Wylie, a whistleblower who formerly worked with Cambridge Analytica, the consulting firm that is said to have harvested private information from more than 50 million Facebook users, speaks at the Frontline Club in London, Britain, March 20, 2018. REUTERS/Henry Nicholls
A man films Christopher Wylie, a whistleblower who formerly worked with Cambridge Analytica, the consulting firm that is said to have harvested private information from more than 50 million Facebook users, for a Facebook live cast as he speaks at the Frontline Club in London, Britain, March 20, 2018. REUTERS/Henry Nicholls
Christopher Wylie, a whistleblower who formerly worked with Cambridge Analytica, the consulting firm that is said to have harvested private information from more than 50 million Facebook users, arrives at the Frontline Club in London, Britain, March 20, 2018. REUTERS/Henry Nicholls
A man wheels storage crates from the building that houses the offices of Cambridge Analytica in central London, Britain, March 20, 2018. REUTERS/Henry Nicholls
People walk past the building housing the offices of Cambridge Analytica in central London, Britain, March 20, 2018. REUTERS/Henry Nicholls
People walk past the building housing the offices of Cambridge Analytica in central London, Britain, March 20, 2018. REUTERS/Henry Nicholls
Alexander Nix, CEO of Cambridge Analytica arrives at the offices of Cambridge Analytica in central London, Britain, March 20, 2018. REUTERS/Henry Nicholls
A man films Christopher Wylie, a whistleblower who formerly worked with Cambridge Analytica, the consulting firm that is said to have harvested private information from more than 50 million Facebook users, for a Facebook live cast as he speaks at the Frontline Club in London, Britain, March 20, 2018. REUTERS/Henry Nicholls
NEW YORK, NY - MARCH 19: Traders and financial professionals work ahead of the closing bell on the floor of the New York Stock Exchange (NYSE), March 19, 2018 in New York City. The Dow Jones industrial average dropped over 330 points on Monday. Shares of Facebook dropped nearly 7 percent after news broke that analytics firm Cambridge Analytica was able to collect information on 50 million people's Facebook profiles without their consent. (Photo by Drew Angerer/Getty Images)
PARIS, FRANCE - MARCH 20: In this photo illustration the logo of the strategic communication company 'Cambridge Analytica' is seen on the screen of an iPhone on March 20, 2018 in Paris, France. Cambridge Analytica is accused of collecting the personal information of 50 million users of the Facebook social network without their consent and would have used it to develop software to predict and influence voter voting during the campaign American election according to the New York Times and the Guardian. Facebook share price fell by more than 5% Monday shortly after the opening of Wall Street. (Photo Illustration by Chesnot/Getty Images)
NEW YORK, NY - MARCH 19: Traders and financial professionals work ahead of the closing bell on the floor of the New York Stock Exchange (NYSE), March 19, 2018 in New York City. The Dow Jones industrial average dropped over 330 points on Monday. Shares of Facebook dropped nearly 7 percent after news broke that analytics firm Cambridge Analytica was able to collect information on 50 million people's Facebook profiles without their consent. (Photo by Drew Angerer/Getty Images)
HOLBORN, UNITED KINGDOM - MARCH 20: Chief executive of Cambridge Analytica Alexander Nix arrives at the office near Holborn on March 20, 2018 in Holborn, England. PHOTOGRAPH BY Matthew Chattle / Barcroft Images (Photo credit should read Matthew Chattle / Barcroft Images / Barcroft Media via Getty Images)
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The firm is shutting down effective Wednesday and employees have been told to turn in their computers, the Wall Street Journal reported earlier.

Cambridge Analytica is a part of SCL Group, a government and military contractor that says it works on everything from food security research to counter-narcotics to political campaigns. SCL was founded more than 25 years ago, according to its website.

Cambridge Analytica was created around 2013 initially with a focus on U.S. elections, with $15 million in backing from billionaire Republican donor Robert Mercer and a name chosen by future Trump White House adviser Steve Bannon, the New York Times reported.

Cambridge Analytica marketed itself as providing consumer research, targeted advertising and other data-related services to both political and corporate clients.

After Trump won the White House in 2016, in part with the firm’s help, Cambridge Analytica CEO Alexander Nix went to more clients to pitch his services, the Times reported last year. The company boasted it could develop psychological profiles of consumers and voters which was a “secret sauce” it used to sway them more effectively than traditional advertising could.

One unanswered question in Special Counsel Robert Mueller’s investigation into whether there was any collusion between Trump's campaign and Russia is whether Russia’s Internet Research Agency or Russian intelligence used data Cambridge Analytica obtained from Facebook or other sources to help target and time anti-Hillary Clinton, pro-Trump and politically and racially divisive messages during the election.

Bannon was a former vice president of the London-based firm, and Mueller has asked it to provide internal documents about how its data and analyses were used in the Trump campaign, according to sources familiar with the investigation.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Patrick Graham and Bill Rigby)

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