Endgame for Pegasus? Court bars NSO From WhatsApp
The decision follows U.S. investor takeover as the spyware firm fights for survival.
A U.S. federal court has permanently barred Israel’s NSO Group from targeting WhatsApp, dealing a potentially fatal blow to the spyware maker long accused of enabling surveillance abuses worldwide. The ruling caps six years of litigation brought by Meta Platforms, the parent company of WhatsApp, over NSO’s alleged attempts to infiltrate the encrypted messaging service.
In a 25-page judgment issued Friday, U.S. District Court Judge Phyllis Hamilton imposed a permanent injunction prohibiting NSO from “breaking into or attempting to break into” WhatsApp’s systems. The court simultaneously reduced the punitive damages awarded to Meta from $167 million to $4 million, a 97% reduction that nevertheless leaves the Israeli firm facing an existential legal barrier to its operations.
“This ruling bans spyware maker NSO from ever targeting WhatsApp and our global users again,” said Will Cathcart, head of WhatsApp, in a post on X. “We applaud this decision that comes after six years of litigation to hold NSO accountable for targeting members of civil society.”
For NSO, the injunction may prove far more damaging than the monetary penalty. In court filings, the company had warned that such a ban “would put NSO’s entire enterprise at risk” and could “force NSO out of business.” The company said it was reviewing the ruling and would determine its next steps accordingly.
While welcoming the reduction in damages, NSO emphasized that the injunction applied only to the company itself, not its customers, typically government agencies, “who will continue using the company’s technology to help protect public safety,” according to its statement.
The ruling comes just days after news that a group of American investors led by Hollywood producer Robert Simonds reached an agreement to acquire NSO in a deal valued at several tens of millions of dollars. Completion of the transaction remains subject to approval from Israel’s Defense Export Control Agency and the U.S. Securities and Exchange Commission.
The acquisition marks the first time control of NSO will move fully out of Israeli hands. Since 2023, NSO has been held through a Luxembourg-based company owned by founder Omri Lavie, who assumed control from lenders following a restructuring of roughly $500 million in debt. Simonds, known for producing films starring Adam Sandler and Reese Witherspoon, previously sat on NSO’s board but resigned after a failed takeover bid in 2023.
Under Lavie’s leadership, NSO reportedly stabilized its finances after years of losses following its blacklisting by the U.S. Commerce Department in 2021. The company returned to near break-even and slight profitability, making it more attractive to potential investors like Simonds.
