Israel-based Spyware Maker NSO Suffers Major Defeat Against Meta, Ordered To Hand Over Pegasus Code

In a significant legal development, a U.S. court has ordered Israeli firm NSO Group to share its Pegasus spyware code with messaging app WhatsApp, owned by Meta Platforms Inc. META. This order comes amidst a lawsuit accusing NSO of spying on 1,400 WhatsApp users.

What Happened: This ruling marks a significant victory for WhatsApp in its ongoing legal tussle with NSO since 2019. The lawsuit alleges NSO’s spyware was deployed against 1,400 WhatsApp users over a fortnight.

The Pegasus code, along with other surveillance tools offered by NSO, is considered a closely guarded state secret, with the Israeli defense ministry requiring review and approval for all license sales to foreign governments.

Judge Phyllis Hamilton dismissed NSO's plea to be exempted from all discovery obligations in the case due to "various US and Israeli restrictions," reported The Guardian.

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However, she agreed with NSO on not compelling the company to disclose its client names or server architecture information at this juncture.

The court has commanded NSO to produce “all relevant spyware” for a year before and after the two weeks when WhatsApp users were allegedly targeted between April 2018 and May 2020.

NSO is also required to provide WhatsApp with information “concerning the full functionality of the relevant spyware”.

Why It Matters: This ruling is the latest development in a series of legal battles involving NSO Group and its Pegasus spyware.

Apple Inc. AAPL initiated a lawsuit against NSO in November 2021, accusing the company of using Pegasus to infiltrate iPhones and extract sensitive user data.

In January 2024, Apple scored an early victory in its legal dispute against NSO.

Furthermore, another Israeli company, QuaDream, was reported in April 2023 to have developed a spyware tool similar to Pegasus, indicating a growing trend of exploiting smartphone vulnerabilities for surveillance purposes.

This ongoing lawsuit and the court’s recent ruling highlight the escalating concerns over privacy and security in the digital age.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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