In a landmark ruling that reverberates across the cybersecurity and tech policy landscape, Meta has won a $167.7 million judgment against NSO Group, the Israeli company behind the Pegasus spyware.
The United States federal jury awarded $444,719 in compensatory damages and $167.25 million in punitive damages, marking the first time a U.S. company has successfully held a commercial spyware vendor accountable in a court of law, Reuters reports.
This is more than a courtroom win. It's a pivotal moment for digital civil liberties, responsible surveillance governance, and the role of private enterprise in defending the cyber ecosystem.
Anatomy of the breach: technical exploitation of WhatsApp
Meta (then Facebook) filed a lawsuit in 2019, asserting that the NSO Group had exploited a vulnerability in WhatsApp's VoIP calling feature. The attack did not require user interaction; merely receiving a malicious call triggered remote code execution, which silently installed the Pegasus spyware.
From a cybersecurity standpoint, this is a textbook zero-click exploit, one of the most dangerous forms of attack because it leaves users virtually powerless to prevent infection. The attack chain bypassed WhatsApp's security protocols and affected approximately 1,400 targets across 20 countries.
Targets included human rights defenders, journalists, lawyers, diplomats, and government officials.
According to trial testimony and WhatsApp's forensic investigation, NSO's infrastructure masqueraded as WhatsApp traffic, allowing it to evade network-based detection tools and endpoint defenses.
Spyware at scale: inside the surveillance-as-a-service business model
The trial unearthed a rare look into NSO's operations. Evidence showed:
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NSO sold hacking packages for $7 million to European clients (15 device slots per deal).
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U.S. agencies, including the FBI and CIA, paid more than $7.5 million to evaluate NSO's software (though it's unclear if they used it operationally).
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NSO continued using WhatsApp systems even after Meta filed the lawsuit.
While NSO Group maintains it sells to vetted government clients for law enforcement purposes, leaked internal communications and trial evidence revealed widespread use of Pegasus against journalists and dissidents—an abuse of power under the guise of national security.
Legal fallout and cybersecurity precedent
This verdict reinforces that companies operating in cyberspace, particularly those with nation-state grade surveillance capabilities, can no longer act with impunity.
Meta's legal argument was grounded in:
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Computer Fraud and Abuse Act (CFAA) violations
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Breach of WhatsApp's Terms of Service
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Tortious interference with platform operations
It also sets a judicial precedent for private entities to defend their infrastructure, users, and brand from weaponized code created by foreign surveillance firms.
This is especially relevant as offensive cybersecurity capabilities are increasingly privatized and exported. Pegasus was never just a theoretical tool; it was deployed in active campaigns that compromised device integrity, data confidentiality, and individual safety.
[RELATED: CISA Issues Alert to Secure iPhones Against Pegasus Spyware Zero-Days]
Implications for CISOs, privacy advocates, and global policy
From the CISO's perspective, this case highlights several pressing challenges:
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Zero-click exploits are not just nation-state problems; they now affect commercial and civil targets at scale.
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Third-party software risks extend beyond the supply chain to nation-state surveillance contractors.
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Privacy and compliance teams must account for the geopolitical risks associated with surveillanceware vendors.
This case may accelerate legislative efforts to regulate spyware exports, influence MLAT (mutual legal assistance treaty) frameworks, and prompt governments to blacklist or sanction private surveillance vendors with poor accountability track records.
Meanwhile, for cybersecurity practitioners, the case reinforces a fundamental truth: cyber defense is no longer just about keeping out ransomware and botnets. It's about preserving trust in digital infrastructure from exploitative tools, no matter their origin.
Meta's courtroom victory does not undo the damage caused by Pegasus, but it serves as a strong warning: the era of unchecked spyware is over. As enterprise platforms continue to form the digital backbone of modern communication, defenders—from SOC analysts to policy leaders—must recognize that fighting threat actors now encompasses not only detection and response but also litigation, regulation, and public exposure.
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[RELATED: Spyware Pariah: NSO Group Placed on U.S. Blacklist]
