Britain's biggest fact-checking company goes into administration
Logically was born in the wake of the 2016 United States presidential election and the Brexit referendum. It once boasted 200 employees in the UK, India and America.
Its founder, Lyric Jain, a Cambridge engineering graduate, said he was also motivated by the death of his paternal grandmother in India who died after being persuaded to abandon chemotherapy treatment in favour of a 'special juice'.
He said his goal was 'tackling harmful and manipulative content at speed and scale' and 'bringing truth to the digital world, and making it a safer place for everyone everywhere'.
Jain hails from a wealthy Indian family, whose home is a mansion in Staffordshire that once belonged to Admiral Sir John Jervis, a naval commander in the 18th century.
The fact-checking industry is facing a backlash driven by President Trump's second administration, but former employees of Logically blame its demise on what they claim were strategic errors from the company's leadership.
Logically did fact-checking for Meta and TikTok under the Logically Facts brand and also developed an AI software product that analysed social media posts for disinformation.
Former staff point to a decision by the company to work for the controversial fact-checking unit of the Indian state government of Karnataka as a crucial misstep.
The unit was criticised by the Editors Guild of India and other organisations who argued the system could be used to suppress dissent and free speech and threaten independent journalism.
That contract led to the loss of its certification from International Fact-Checking Network (IFCN), an industry body, which does not allow fact-checkers to be employed by state entities or political parties.
Around that time Logically lost the Meta and TikTok contracts which were worth millions of pounds in revenue. Sources close to Logically suggest the loss of the social media contracts was for commercial reasons rather than certification.
Logically also worked for the British government's Counter-Disinformation Unit during the Covid pandemic, attracting some controversy from free speech supporters.
• Disinformation unit 'tried to stifle Covid lockdown critics'
Angie Drobnic Holan, director of the IFCN, said of the Indian contract: 'They lost their certification in part because of that and also concerns about overall transparency.
'It wasn't clear what work was journalistic and what work was … private, for lack of a better word. We knew that they were doing some work advising governments, but it wasn't very clear what the nature of that work was or how it impacted their fact-checking operation.
'There was no allegation that they were doing anything wrong. But our code is about meeting very high standards.'
Former staff said the company was keen to drop human-driven fact-checking in favour of an AI software product called Logically Intelligence. The product was hampered when social media companies like X cut off access to their data.
Tech giants including Google, Meta and X have dropped or scaled back fact-checking services in recent month. After Trump's election, Meta scrapped its external fact-checkers on Facebook, Instagram and Threads, replacing them with a 'crowd-sourced' system like the one pioneered on X.Musk's social media site announced this week that AI would be writing fact-checking notes on its crowd-sourced system called Community Notes. Last week Google dropped a system called ClaimReview that allowed fact-checkers to promote accurate information on search results.Chris Morris, chief executive of Full Fact, a British fact-checking charity, said: 'Google's decision to deprioritise fact-checks will make it harder for users to access accurate information designed to help them make informed choices. It's a disappointing decision from a company that has until very recently been a global fact-checking champion.'Google said the change was a 'minor clean-up' which 'affected a very small percentage of results'.
Logically's assets have been transferred to another company called Kreatur under a pre-pack administration process. The main shareholder and director of Kreatur, Ashwin Kumaraswamy, is a former director and the original investor in Logically.A Kreatur spokesperson said: 'Kreatur Ltd has acquired Logically's core technology, brand and key assets as part of a pre-pack administration process. The transaction ensures continuity for all customers and preserves over 40 full-time roles.'
Kumaraswamy was approached for comment.
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