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In a significant legal development, a U.S. federal appeals court has dismissed a lawsuit brought by Hanan Elatr Khashoggi, widow of slain journalist Jamal Khashoggi, against the controversial Israeli spyware company NSO Group. The court’s decision represents a blow to efforts seeking accountability from tech firms accused of facilitating state-sponsored surveillance and human rights abuses. With the shadow of Pegasus spyware looming large over recent global controversies, the ruling raises critical questions about legal jurisdiction and the path forward for victims of digital espionage.
The U.S. Court of Appeals for the Fourth Circuit has rejected an attempt by Hanan Elatr Khashoggi to reinstate her lawsuit against NSO Group. Elatr, the widow of Jamal Khashoggi — the Washington Post journalist brutally murdered inside the Saudi consulate in Istanbul in 2018 — had alleged that NSO’s Pegasus spyware was used to infiltrate her phone and monitor her conversations with her late husband. She claimed this surveillance played a role in his assassination.
Previously, a U.S. District Court in Virginia dismissed the lawsuit on the grounds of “personal jurisdiction” — the court’s legal authority over the parties involved. The Fourth Circuit upheld this decision, finding no sufficient connection between NSO Group’s actions and the state of Virginia. The judges stated that, unlike in a separate and successful lawsuit filed by WhatsApp in California, NSO had not specifically targeted Virginia with its activities.
The contrast drawn with the WhatsApp case is key. There, a California jury awarded nearly \$168 million in damages to WhatsApp after determining that NSO Group had explicitly targeted the company’s California-based servers to deliver Pegasus spyware. That direct interaction with California infrastructure created the jurisdictional link missing in Elatr’s case.
The court acknowledged that if Pegasus was used to monitor Elatr in Virginia, it was likely done under the instruction of foreign governments — specifically Saudi Arabia and the UAE — not by NSO’s own volition. Thus, the Israeli company avoided legal responsibility in this particular jurisdiction.
Despite the setback, Hanan Elatr remains defiant. She continues to assert that NSO did infiltrate her phone and vows to seek justice through other legal avenues, including possibly pressing lawmakers for legislative action. Meanwhile, NSO Group, whose spyware is widely used by governments worldwide, celebrated the decision, emphasizing that the court reaffirmed its legal position.
Notably, another lawsuit against NSO by journalists from El Salvador is still pending, and the outcome may offer further clarity on how U.S. courts are willing to interpret and apply jurisdictional boundaries in cases involving digital surveillance.
What Undercode Say:
This legal decision sheds light on the intricate barriers victims of cyber surveillance face when pursuing justice. The court’s emphasis on “personal jurisdiction” over direct wrongdoing signals a procedural hurdle that many similar cases may not be able to overcome, regardless of the severity of the allegations.
From a broader perspective, the court’s dismissal does not necessarily suggest innocence on NSO Group’s part but rather highlights the legal challenge of holding foreign spyware vendors accountable in U.S. courts unless they directly operate within American jurisdictions. It also underscores how legal systems struggle to keep pace with transnational digital threats.
NSO’s defense rested on a key legal shield: the claim that its technology was used by clients — namely governments — and not directly by the company itself to commit specific violations. This “arms-length” model has allowed companies like NSO to operate in a gray zone, supplying powerful tools to regimes while distancing themselves from how those tools are deployed.
The contrast with the WhatsApp case shows that when plaintiffs can establish a clear technical and operational footprint within U.S. territory, courts are more willing to assign liability. WhatsApp proved that NSO Group intentionally accessed its California-based servers, providing a direct link. Elatr, by contrast, could not show that NSO Group had “aimed” its surveillance at Virginia on its own initiative.
This reinforces the growing trend in which cyber-surveillance victims are caught in jurisdictional limbo — especially when surveillance is conducted across borders, through proxies, or under state direction.
Hanan Elatr’s statement reflects a human rights narrative that the legal system doesn’t always capture: even if justice is denied in court, the moral case remains powerful. Her decision to continue fighting in legislative arenas like Capitol Hill may find more traction, particularly in an era where tech accountability is a growing bipartisan issue in the U.S.
The case also hints at future judicial complexities. As the pending lawsuit involving El Salvadoran journalists proceeds, it could further define how courts evaluate spyware-related offenses and jurisdiction, especially when journalists and dissidents are involved.
Ultimately, this legal rejection does not end the conversation about Pegasus or NSO. It simply redirects it — perhaps toward legislative reform, international pressure, and more coordinated digital rights advocacy.
Fact Checker Results:
✅ Court ruled based on legal jurisdiction, not the truth of Elatr’s claims
✅ NSO Group’s conduct in California vs. Virginia was legally distinct
✅ Surveillance allegations remain unresolved but credible in broader context 📱🧑⚖️🕵️♀️
Prediction:
As legal challenges against spyware firms gain momentum, courts may increasingly scrutinize the role of tech vendors in facilitating surveillance. Expect a rise in legislative proposals targeting companies like NSO, especially if further cases, like the one in California, continue to result in substantial penalties. Hanan Elatr’s campaign could shift the battleground from the courts to Congress — and that may ultimately be where stronger accountability is forged.
References:
Reported By: cyberscoop.com
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