NSO seeks new trial after $168 million jury verdict in WhatsApp case
Spyware maker claims punitive damages are unconstitutional and unaffordable amid mounting financial woes.
NSO Group is asking a U.S. federal court to order a new trial in a lawsuit brought by WhatsApp, after a jury awarded the Meta-owned messaging app $168 million in damages. The Israeli spyware firm filed a motion last week in a federal district court in California, essentially requesting the court reduce the verdict.
In early May, a jury awarded WhatsApp $444,719 in compensatory damages and $167.25 million in punitive damages, finding that NSO exploited vulnerabilities in the encrypted messaging platform and sold the exploit to clients who allegedly used it to spy on journalists, activists, and political opponents. WhatsApp first filed the suit in 2019.
In its motion, NSO argues that the punitive damages - more than 376 times the compensatory amount - far exceed constitutional limits.
The motion further claims that the award violates due process principles established by the U.S. Supreme Court, which generally limits punitive damages to no more than four times compensatory damages. NSO also alleges that the jury was improperly motivated to punish NSO.
NSO also argues that the size of the award vastly exceeds its financial capacity. Court filings and testimony from CEO Yaron Shohat revealed the company is in serious financial distress: NSO lost $9 million in 2023 and $12 million in 2024. Its bank balance dropped from $8.8 million in 2023 to $5.1 million in 2024. “I don’t think we can pay anything,” Shohat testified. “We are struggling to keep our heads above water.”
WhatsApp, in a statement to TechCrunch, said it would continue its legal efforts against NSO: “For the past six years, NSO has tried to avoid accountability at every turn. This is another expected attempt to claim impunity, in response to a strong message from the jury of U.S. citizens deciding to punish NSO for its 2019 illegal attack against an American company and its users,” said Franklin. “We’ll respond to the court as we continue to pursue a permanent injunction against NSO to prevent this spyware firm from targeting WhatsApp and our users ever again.”
NSO has not yet responded publicly to WhatsApp’s comments.
