A California federal judge expressed skepticism over NSO Group’s attempt to reduce a jury’s $168 million damages award to Meta Platforms Inc. in their ongoing spyware dispute.
U.S. District Judge Phyllis Hamilton questioned NSO Group’s argument during a hearing on Thursday, highlighting inconsistencies in the company’s position. NSO’s counsel characterized Meta’s $444,000 compensatory damages as “a mere pittance” during trial, but has now described the same amount as “substantial” in its effort to reduce the punitive damages.
The hearing addressed NSO Group’s motion to cut the $167.25 million punitive damages award or grant a new trial, and Meta’s request for a permanent injunction to block NSO from accessing its platforms, including WhatsApp and Facebook.
NSO argued the damages were excessive and violated constitutional limits, citing case law that typically restricts punitive damages to a ratio of 1-to-1 or 4-to-1 with compensatory damages. Judge Hamilton, however, noted precedent that allows higher ratios when conduct is deemed “particularly egregious.”
Meta’s legal team countered that the jury had already determined NSO’s actions were reprehensible, pointing to evidence that NSO reverse-engineered WhatsApp code to deploy Pegasus spyware on approximately 1,400 devices belonging to journalists, human rights activists, and diplomats.
Judge Hamilton took both motions under submission without issuing a decision from the bench.
Meta is represented by Davis Polk & Wardwell LLP, while NSO is represented by King & Spalding LLP. The case is WhatsApp Inc. et al. v. NSO Group Technologies Ltd. et al., case number 4:19-cv-07123, in the U.S. District Court for the Northern District of California.
