A US federal court ordered Israeli spyware company NSO Group on Tuesday to pay WhatsApp and its parent company Meta damages of almost $170 million after its cyber tools were used to hack approximately 1,400 WhatsApp accounts, according to Politico.
The ruling represents a significant victory for privacy advocates and those opposing NSO Group's controversial Pegasus software. The Israeli company has become the most prominent example of the largely hidden spyware industry, which governments increasingly employ to monitor dissidents, journalists, and politicians. NSO Group has consistently rejected criticism, arguing that its Pegasus spyware has been used beneficially, such as in capturing high-profile criminals.
This court decision marks the latest development in legal proceedings that began in 2019, Politico reported. The ruling requires NSO Group to pay WhatsApp punitive damages of around $167 million in addition to more than $440,000 in compensatory damages following one day of jury deliberation, a Meta spokesperson said.
The case stems from an operation connected to NSO Group that attempted to exploit video calling systems and deliver malware to approximately 1,400 WhatsApp users in 2019, many working for civil society organizations, Politico reported. WhatsApp filed a legal complaint after discovering the scheme.
NSO Group had previously been found liable for hacking the WhatsApp user accounts, establishing a precedent for organizations targeted by spyware to take legal action against companies that create such malicious software.
Meta published a post shortly after the ruling celebrating the victory and indicated that WhatsApp will seek a court order to "prevent NSO from ever targeting WhatsApp again." The post added that Meta will make an unspecified donation to digital rights organizations that work to expose spyware abuses. Additionally, WhatsApp plans to release transcripts of deposition videos from NSO Group executives and others to help researchers understand the full extent of spyware use globally.
"Today's verdict in WhatsApp's case is an important step forward for privacy and security as the first victory against the development and use of illegal spyware that threatens the safety and privacy of everyone," the post reads.
Apple had also filed a lawsuit against NSO Group, seeking damages for spyware used against its customers. However, Apple ultimately dropped the case last year after concluding that pursuing it might expose sensitive Apple user data.
Gil Lainer, vice president of global communications for NSO Group, said in a statement Tuesday that the decision is "another stope in a lengthy judicial process," and that "we firmly believe that our technology plays a critical role in preventing serious crime and terrorism and is deployed responsibly by authorized government agencies."
"We will carefully examine the verdict's details and pursue appropriate legal remedies, including further proceedings and an appeal," Lainer said, adding that the company "remains fully committed to its mission to develop technologies that protect public safety" while working within legal frameworks.
NSO Group was added to the Commerce Department's entity list in 2021, making it difficult for the company to conduct business in the US. Meanwhile, the European Parliament has established a committee to investigate Pegasus use across EU nations.
