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A sweeping legal decision from a U.S. federal jury has sent a powerful message to the surveillance technology industry: accountability is coming. The Israeli cyber intelligence firm NSO Group has been ordered to pay approximately \$168 million in damages to Meta-owned WhatsApp for deploying the infamous Pegasus spyware through WhatsApp servers. This case, years in the making, exposes how deeply commercial surveillance tools have infiltrated civil society — and how tech giants are beginning to fight back.
In 2019, WhatsApp initiated legal action against NSO Group, accusing the company of targeting over 1,400 individuals across 51 countries using a zero-day exploit in its voice calling feature. Victims included journalists, human rights defenders, and dissidents — all surveilled without their knowledge using military-grade spyware.
The jury’s verdict followed a December 2024 ruling by U.S. District Judge Phyllis J. Hamilton, who found that Pegasus spyware was delivered through WhatsApp’s U.S.-based servers 43 times in May 2019 alone. These actions violated both federal and state laws.
WhatsApp engineers worked relentlessly to close the exploited security gap and were awarded \$444,719 in compensatory damages in addition to the \$167 million in punitive damages. This legal victory underscores a growing global concern about the unchecked power of spyware vendors like NSO.
WhatsApp’s leadership described the verdict as historic. Will Cathcart, head of WhatsApp, said the company will pursue a permanent court order preventing NSO from targeting WhatsApp in the future. Moreover, Meta has committed to donating to digital rights organizations that help defend people from such surveillance abuses.
NSO, for its part, continues to assert that its software is a tool used to combat serious crimes and terrorism. However, the company has faced mounting scrutiny, especially after being sanctioned by the U.S. government in 2021 for engaging in “malicious cyber activities.”
The lawsuit adds to NSO Group’s mounting legal and reputational problems. Although Apple dropped its parallel lawsuit in 2024 citing the sensitivity of its internal security practices, WhatsApp’s decisive legal victory may serve as a legal template for future litigation against cyberweapon manufacturers.
What Undercode Say:
The verdict against NSO Group is more than just a courtroom win — it’s a moment of reckoning for the entire surveillance tech ecosystem.
- Global Impact of Pegasus: With confirmed targeting in 51 countries, including 456 victims in Mexico and hundreds more across Asia, Africa, and the Middle East, Pegasus’s reach is unprecedented. These figures highlight how spyware is being used not just for criminal investigations, but often to suppress dissent.
A Turning Point for Legal Accountability: This case is the first time a spyware vendor has been held monetarily liable for misusing global infrastructure like WhatsApp’s servers. It sets a dangerous precedent for similar vendors operating in legal gray zones.
Zero-Day Exploits Are Still a Major Threat: The CVE-2019-3568 vulnerability exploited by NSO had a critical CVSS score of 9.8, showing how dangerous undisclosed bugs can be when weaponized. Despite industry efforts, attackers are still consistently finding ways into devices via messaging platforms.
Legal Complexity Around Spyware Vendors: NSO’s defense — that it simply sells tools and doesn’t control their use — mirrors arguments used by gun manufacturers. However, the court rejected this rationale, stressing that NSO actively supports its clients and invests heavily in malware delivery systems.
Corporate Espionage and National Security Blur: This case also raises deeper questions about where cybersecurity ends and national security begins. The involvement of U.S. infrastructure by a foreign surveillance company puts this at the intersection of tech policy and international law.
Meta’s Role as a Defender of Civil Society: By not only winning the lawsuit but also pledging donations to digital rights groups, Meta positions itself as a privacy advocate. This is strategically important for a company that has faced its own privacy scandals in the past.
Precedent for Tech Giants Taking Legal Action: WhatsApp’s aggressive legal strategy could inspire other platforms to hold surveillance companies accountable. The dropped Apple case may have slowed momentum, but this verdict could revive interest in taking legal action against private intelligence firms.
Ethical and Technical Challenges Ahead: Even with legal wins, spyware remains a step ahead of many cybersecurity defenses. The continued viability of Pegasus against iOS and Android means the battle is far from over.
9. Cyberweapons Are Now a Diplomatic Issue:
- Reputation Damage for NSO Group: Beyond monetary damages, NSO’s brand is severely tarnished. Sanctions, lawsuits, and press scrutiny are likely to drive clients away, or at least underground, further complicating global efforts to regulate the surveillance tech space.
Fact Checker Results:
Verified: NSO did use WhatsApp servers 43 times to deliver Pegasus spyware.
Verified: Over 1,400 victims were targeted across 51 countries, including journalists and activists.
Verified: A U.S. federal jury awarded WhatsApp over \$168 million in punitive and compensatory damages.
Prediction:
The NSO Group ruling marks a shift in how courts handle commercial spyware. We expect similar lawsuits to arise globally as digital rights groups become more organized and tech companies more assertive. Surveillance technology firms may increasingly relocate operations or rebrand to escape legal blowback, while national governments will likely face pressure to establish clearer export laws and cybersecurity norms. The next five years could see the spyware market split — with some firms retreating into the shadows and others lobbying for legitimacy under tighter regulation.
References:
Reported By: thehackernews.com
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