NSO Group Challenges $167M Spyware Verdict in WhatsApp Case
Why is NSO Group being sued by WhatsApp? In a landmark legal battle over spyware abuse and digital privacy violations, NSO Group—a controversial Israeli surveillance software company—is seeking a new trial after a U.S. jury ordered it to pay $167 million in damages to WhatsApp. The 2019 lawsuit alleged that NSO used its Pegasus spywareto hack into more than 1,400 devices, including those of journalists, activists, and diplomats. This case has become a focal point in global debates on cybersecurity, data protection, and government surveillance tools.
NSO Group Calls Massive Damages "Unlawful and Excessive"
On May 2025, the court awarded WhatsApp significant punitive damages, setting a precedent in privacy-related lawsuits. However, NSO Group argues that the verdict was “outrageous,” claiming it exceeds constitutional limits for punitive damages. The company filed a motion for remittitur—a legal process to reduce what it sees as an excessive financial penalty.
NSO’s legal team asserts that the $167 million award is grossly disproportionate to the compensatory damages of $444,719. According to them, U.S. law typically caps punitive damages at four times the compensatory amount. In their filing, NSO’s lawyers accused the jury of acting out of hostility toward their business model rather than focusing on the specific conduct under legal scrutiny.
WhatsApp Responds: “This is About Accountability”
WhatsApp, owned by Meta, responded swiftly. Company spokesperson Margarita Franklin emphasized that this is yet another attempt by NSO Group to dodge responsibility. She reiterated that the messaging platform remains committed to protecting user privacy and is pursuing a permanent injunction to prevent NSO from targeting WhatsApp users in the future.
“For the past six years, NSO has tried to avoid accountability at every turn,” Franklin said. “This is an expected move to deflect from the jury's clear message: spyware attacks on American users won't be tolerated.”
Financial Strain and Industry Fallout
NSO Group also told the court that the damages award exceeds its ability to pay, highlighting its current financial struggles. During the trial, the company revealed deep economic distress, adding urgency to its request for a reduced judgment or retrial.
This legal battle comes amid growing scrutiny of spyware vendors globally. Governments, corporations, and digital rights organizations are increasingly demanding transparency and regulatory oversight of tools that compromise cybersecurity and data privacy.
The Broader Impact on Surveillance Tech and Legal Precedents
The WhatsApp vs. NSO Group case is one of the most significant spyware lawsuits in recent history. It raises critical questions about the future of digital surveillance, accountability of tech vendors, and the limits of punitive damages in U.S. courts. If the verdict stands, it may set a powerful precedent discouraging other spyware firms from engaging in similar practices.
For users, businesses, and policymakers, this case is a wake-up call about the risks posed by government-grade hacking tools being deployed without oversight.
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