SAN FRANCISCO — NSO Group is seeking a new trial in a lawsuit initiated by WhatsApp, following a jury verdict that awarded the messaging platform $168 million in damages. The Israeli spyware firm submitted its motion in a California federal court last week, requesting that the court reevaluate the jury’s decision and reduce the punitive award.
In May, the jury determined that NSO exploited vulnerabilities within WhatsApp’s encrypted messaging application, selling this exploit to clients believed to have used it for surveillance of journalists, activists, and political figures. WhatsApp originally filed the lawsuit in 2019, asserting that NSO’s actions constituted a significant breach of trust and privacy.
NSO’s motion argues that the punitive damages awarded—amounting to more than 376 times the compensatory damages—are excessively disproportionate and violate constitutional limits. The firm contends that the U.S. Supreme Court generally restricts punitive damages to no more than four times the compensatory amount and alleges that the jury may have been improperly influenced in their decision to impose such a severe penalty on NSO.
The company further claims that the size of the award is far beyond its financial capabilities. Testimony from NSO CEO Yaron Shohat indicated that the firm is struggling with serious financial troubles, having reported losses of $9 million in 2023 and an estimated $12 million in 2024. Shohat revealed that the company’s bank balance has dwindled from $8.8 million in 2023 to $5.1 million this year. “I don’t think we can pay anything,” Shohat remarked, emphasizing the company’s dire financial situation.
In response to the verdict, WhatsApp reiterated its commitment to pursuing legal actions against NSO. A spokesperson stated that the firm has continuously sought to evade accountability for its actions. They characterized NSO’s latest motion as an attempt to escape the repercussions of a jury’s ruling made by U.S. citizens and reaffirmed their goal of obtaining a permanent injunction against NSO to prevent future occurrences of surveillance against WhatsApp and its users.
As of now, NSO has not released any public statement regarding the comments from WhatsApp or the latest developments in the case.
This situation continues to develop, underscoring ongoing tensions between technology and privacy in the digital age.
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