NSO Group Ordered to Pay WhatsApp $167M+ in Spyware Damages

NSO Group Ordered to Pay WhatsApp Over $167 Million in Damages

The creator of spyware, NSO Group, is obligated to compensate WhatsApp with damages exceeding $167 million following a 2019 hacking incident impacting over 1,400 individuals.

Legal Battle Resolution

After a five-year legal contest, a jury determined on Tuesday that NSO Group must pay $167,254,000 in punitive damages, alongside approximately $444,719 in compensatory damages.

WhatsApp had requested over $400,000 in compensatory damages, citing the resources dedicated by its personnel to address the attacks, conduct investigations, and implement security updates to resolve the vulnerability exploited by NSO Group.

WhatsApp's Statement

Zade Alsawah, a spokesperson for WhatsApp, declared in a statement that the court case represents “the first victory against illegal spyware that threatens the safety and privacy of everyone.”

Alsawah further emphasized that the ruling signifies “an important step forward for privacy and security,” and acts as a deterrent against the malicious activities of companies like NSO Group targeting American businesses and the privacy of their users.

Potential Appeal

Gil Lainer, a representative of NSO Group, indicated the possibility of an appeal.

“We will carefully examine the verdict’s details and pursue appropriate legal remedies, including further proceedings and an appeal,” Lainer stated.

Revelations During the Trial

The trial, and the preceding lawsuit, brought to light details regarding the victims of the 2019 spyware campaign, as well as the identities of some of NSO Group’s clientele.

Lawsuit Background

This ruling potentially concludes a legal dispute initiated over five years ago when WhatsApp filed a lawsuit against NSO Group.

Meta’s owned WhatsApp accused NSO Group of gaining unauthorized access to its servers and exploiting a flaw in the app’s audio-calling feature to target approximately 1,400 individuals, including activists, journalists, and dissidents.

Concerns Raised by WhatsApp Head

Will Cathcart, the head of WhatsApp, articulated the rationale behind the lawsuit in a Washington Post opinion piece, asserting that “this should serve as a wake-up call for technology companies, governments and all Internet users.”

Cathcart warned that the proliferation of surveillance tools poses a risk to everyone.

Prior Ruling in Favor of WhatsApp

In December, WhatsApp secured a preliminary victory when Judge Phyllis Hamilton ruled that NSO Group was liable for violating both federal and California hacking laws during the 2019 spyware campaign.

The judge also found NSO Group in breach of WhatsApp’s terms of service, which prohibit malicious use of the application.

Cathcart's Reaction to December Ruling

Cathcart celebrated the December ruling on X, calling it “a huge win for privacy” and stating that “surveillance companies should be on notice that illegal spying will not be tolerated.”

Expert Commentary

John Scott-Railton, a senior researcher at Citizen Lab specializing in the spyware industry, lauded the recent ruling.

“This is an incredible moment for those of us who have been around since the beginning of research on mercenary spyware,” Scott-Railton told TechCrunch.

He explained that NSO Group profits from assisting dictators in hacking individuals, and the jury quickly recognized that the company’s business model relies on hacking American companies to enable the targeting of dissidents.

Impact of the Ruling

“The company emerges from this trial severely damaged,” Scott-Railton stated. “Aside from the huge punitive damages, the bigger impact of this case has also been a huge blow to NSO’s efforts to hide their business activities.”

This story has been updated to include comments from WhatsApp and John Scott-Railton.