Meta Platforms (META) was awarded $167.25 million in a six-year-long court battle against Israel’s NSO Group, the maker of the Pegasus spyware. Meta sued NSO in 2019 for hacking 1,400 user accounts on its WhatsApp platform between 2018 and 2020. These attacks were allegedly made on behalf of foreign spy agencies and were meant to target activists, journalists, diplomats, and others.
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The social media giant won the lawsuit yesterday, after a federal court jury in California found NSO Group liable for the attacks. Additionally, NSO Group is charged with $444,719 in compensatory damages, marking a big win for Meta’s attempts to protect the privacy and security of user’s data. Going ahead, Meta plans to secure a court order preventing NSO Group from targeting its WhatsApp platform.
How Pegasus Attacked Meta’s WhatsApp Users
NSO developed a hacking tool that allowed the installation of Pegasus spyware on users’ phones through a phone call, even if the call was not answered. Once installed, the spyware could remotely turn on the device’s camera and microphone, scan emails and text messages, as well as identify the user’s location. Notably, iPhone maker Apple (AAPL) has also sued NSO Group with similar cyberespionage allegations. The spyware firm also faces allegations of abusive surveillance in several countries, including Spain, Mexico, Poland, Saudi Arabia, and El Salvador.
Responding to the verdict, a spokesperson for NSO Group said that the company will review the details of the verdict and is considering an appeal. The spokesperson also said that NSO’s technology is designed to play a crucial role in preventing serious crimes and terrorism, and is deployed responsibly by authorized government agencies.
Spyware companies charge substantial fees for their hacking software. Notably, NSO Group charged its European government customers $7 million for using its platform to hack 15 devices simultaneously. Additionally, the firm would charge an extra $1 to $2 million to hack a user’s phone outside their country of residence. Surprisingly, Meta accused NSO of continuing to target its users’ servers and mobile clients even after the lawsuit was filed in 2019, highlighting the strength of the lucrative cyberespionage industry.
Is META a Good Long-Term Stock?
Wall Street remains highly optimistic about Meta’s long-term stock trajectory. On TipRanks, META stock has a Strong Buy consensus rating based on 41 Buys, two Holds, and one Sell rating. The average Meta Platforms price target of $699.26 implies 19.1% upside potential from current levels. In the past year, META stock has gained 25.9%.
