OAKLAND, Calif. — A federal jury awarded $168 million to Meta Platforms Inc. on Tuesday after finding that the Israeli tech firm NSO Group unlawfully accessed the messaging service WhatsApp to hack the accounts of 1,400 users in 2019.
In a statement following the verdict, NSO Group expressed its intention to appeal the decision, maintaining its defense of the Pegasus spyware, which it claims plays a vital role in combating crime and terrorism when used by authorized government agencies. NSO’s Vice President for Global Communications, Gil Kanier, emphasized that the jury’s ruling represents merely another phase in a protracted legal battle.
The case was presided over by U.S. District Judge Phyllis Hamilton, who had previously ruled against NSO on all of Meta’s claims last December. Hamilton also sanctioned the company for its failure to provide critical pieces of evidence, including the Pegasus source code and internal communications. The dispute was filed under the case title WhatsApp Inc. et al. v. NSO Group Technologies Limited et al. in October 2019.
The heart of Meta’s contention lies in allegations that NSO breached both state and federal laws by utilizing its spyware to infiltrate WhatsApp’s servers, allowing it to inject malicious code into users’ devices across multiple countries, including Bahrain and Mexico. During the trial, Meta’s legal team, led by Greg D. Andres of Davis Polk and Wardwell LLP, argued that NSO engaged in deceptive practices, particularly by modifying Pegasus to escape detection after the lawsuit was initiated.
In a trial brief, Andres and his colleagues argued for punitive damages, claiming that NSO’s actions demonstrated fraudulent intent. They asserted that the company’s redesign efforts occurred after a previous security breach was addressed, thereby justifying additional penalties for the alleged unlawful activities.
The use of Pegasus has drawn considerable international scrutiny, with human rights advocates and regulators criticizing its application by governments for surveillance purposes, especially against political adversaries. The U.S. Department of Commerce took action against NSO Group in November 2021, placing the company on its "Entity List," which identifies entities posing a risk to American consumers.
In its announcement, the Department of Commerce cited evidence indicating that NSO supplied spyware to foreign governments, which subsequently targeted journalists, diplomats, and other officials. The company’s legal representatives from King & Spalding LLP could not be reached for further comments following the verdict.
Prior to the jury’s decision, NSO garnered a procedural victory when Judge Hamilton ruled in favor of allowing a specific punitive damages instruction to be presented to jurors during the trial. This decision included adjustments to the language surrounding how punitive damages could be awarded based on conduct occurring within California.
The legal teams on both sides continue to navigate this complex and evolving case, illustrating the ongoing debates surrounding technology, privacy rights, and national security.
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