Bankruptcy Case

Cambridge Analytica was a political consultancy firm based in the UK which had to close its doors after the famous scandal of how the data of Facebook users was harvested in order to influence the previous presidential elections of the United States. The company is now facing some Facebook users in its case of bankruptcy.

There was a notice filed by Data Breach Plaintiffs on Tuesday for appearing in the New York bankruptcy of the company. There are two lawsuits in which the group is involved. These lawsuits are registered against both Cambridge Analytica as well as Facebook. The group Data Breach Plaintiffs seeks the class action status on the allegations that the personal information of over 87 million users of Facebook was taken and used without taking their permission.

The bankruptcy lawyer, Michael Etkin, partner of Lowenstein Snadler LLP, talked in a phone interview and said that they will perform a function of developments in the insolvency and US bankruptcy proceedings in the UK. He also said that the plaintiffs who filed notice against Cambridge Analytics are concerned about getting “the entire picture of the Cambridge Analytica saga” and the ability to marshal information and documents in the bankruptcy.

In the Delaware District Court, lawsuits were brought in and damages for privacy invasion were demanded. Their actions also posed in increased risk to data breaches and theft according to them. The complaints regarding Cambridge Analytica vary and they include illegal intervention of communications and negligence.

Redmond, one from the lead plaintiff, said that he didn’t permit the personality quiz to use his personal information and store it. The alleged violations occurred through such apps. Redmond said that the damage per violation should be $1000. There were some other suits that had similar claims regarding the personality quiz apps which are alleged to breach data. If Facebook is found violating the consent decree of 2011 over the data handling, then it could face some hefty fines of over $40,000 per day per violation as per the complaint.

Both the cites report that Trump presidential campaign hired Cambridge Analytica for targeting the voters. By filing for bankruptcy, the companies can minimize or stall the lawsuits against them. If any case is to be continued against a company which has filed for bankruptcy, they need to file a claim through foreclosure attorney.

Lawsuits are being filed against Facebook and Cambridge Analytica across the US where some plaintiffs have said that they are facing a lot of dangers because of their private data breaches.

The Cambridge Analytica have filed for bankruptcy while already agreeing to ceasing all their operations and listed liabilities ranging from 1 million dollars to 10 million dollars. They have filed for the Chapter 7 petition. The bankruptcy is filed in the Southern District of New York’s US Bankruptcy court while the case is  Cambridge Analytica LLC, 18-11500.

The bankruptcy attorney for the Cambridge Analytica refused to talk or comment while Facebook hasn’t returned a message too seeking comment.


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