After we learned that Cambridge Analytica [VIDEO] harvested data from 87 million users, the company's latest direction would take a new turn. The data firm filed for bankruptcy on May 17 in the United States. The data analytics firm filed for Chapter 7 bankruptcy. In addition, these developments stem from March allegations reported in the media. According to Reuters, the firm had been hired by President Donald Trump for the 2016 Presidential campaign. The improper and unauthorized use of Facebook [VIDEO] user data dates back to 2014.

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Cambridge Analytica proceeds to close its operations following the data scandal

The company started the gradual closing of its business and operations. Its British parent company, SCL Elections Ltd, confirmed they were in the process of shutting down immediately.

The decision to cease operations as a result of a substantial drop in business. Elsewhere, as reported by Reuters the petition to file for bankruptcy was submitted at the US Bankruptcy Court Southern District of New York. The decision was approved by the board of Cambridge Analytica.

Those who serve at the Cambridge Analytica are Rebekah and Jennifer Mercer. They are the daughters of billionaire Robert Mercer.

As it turns out, the Mercer family is Trump donors.

The suspension of Cambridge Analytica by Facebook started a chain of events

When Facebook announced the suspension of the data firm it unleashed a series of revelations. Initially, it was reported that Cambridge had gotten access to the data from 50 million users. Later, after Mark Zuckerberg's company learned about the data breach, it started an investigation.

Facebook conducted, through a third-party, an investigation and later confirmed the data was accessed by the political consultancy group. The London-based firm was created in 2013 and its efforts were focused on US elections. It received $15 million from Mercer. A New York Times analysis confirms there was involvement by former White House adviser Steve Bannon.

Facebook was not off the hook when the data scandal erupted. The company's CEO, Zuckerberg, was summoned before a US congressional committee to answer questions about the breach from so many users. Zuckerberg has to testify before leaders of the European Parliament in the near future. This news has affected Facebook's stock value and has lost billions of dollars in market value.

Facebook confirmed on Monday (May 14) of this past week, it had suspended close to 200 apps that had access to significant quantities of user data. The lack of confidence has grown for users of Facebook.