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Meta Wins $168 Million Verdict Against Spyware Firm NSO Group in Landmark Privacy Case

Meta Platforms secured a major legal victory on Tuesday, winning a $168 million verdict against Israeli surveillance firm NSO Group in a landmark case centered on unlawful spyware deployment through WhatsApp. The jury in a California court awarded $444,719 in compensatory damages and $167.3 million in punitive damages, concluding a six-year legal battle.

The case stems from a 2019 lawsuit filed by Meta’s subsidiary WhatsApp, which accused NSO of exploiting a vulnerability in the app to install spyware on users’ phones. A December 2023 ruling had already confirmed NSO’s liability, and Tuesday’s verdict marks a rare legal reckoning for a company in the secretive spyware industry.

Meta hailed the outcome as a step forward for privacy and security,” calling it the first legal victory against the development and use of illegal spyware that threatens global user safety.

NSO, which rose to global notoriety in 2016, is known for its controversial Pegasus spyware, used by governments and intelligence agencies. While the company claims its tools are used to combat terrorism and child exploitation, investigations have linked its software to abusive surveillance practices in countries such as Saudi Arabia, Poland, Mexico, and El Salvador.

In response to the ruling, NSO said it would explore legal options, including an appeal.

The trial also offered a rare glimpse into NSO’s inner workings, revealing details about its 140-person research team, a $50 million budget dedicated to exploiting smartphone vulnerabilities, and clients including Uzbekistan, Saudi Arabia, and Mexico. District Judge Phyllis Hamilton criticized NSO for repeatedly failing to comply with court orders and for withholding key evidence during discovery.

Human rights advocates called the ruling a pivotal moment for accountability in the surveillance industry. Natalia Krapiva of Access Now said it sends a strong message to spyware firms: “There will be consequences if you act recklessly or unlawfully.”

Cyberattacks on M&S and Co-op Originated from Help Desk Deception, Says Report

Cybercriminals launched recent attacks on British retailers Marks & Spencer (M&S) and Co-op Group by impersonating employees to trick IT help desks into resetting passwords, according to a report by BleepingComputer. This social engineering tactic allowed hackers to gain initial access to internal systems.

The UK’s National Cyber Security Centre (NCSC) responded by urging all organisations to re-evaluate their help desk protocols, warning that online criminal activity like ransomware and data extortion is on the rise and that even large enterprises are vulnerable to such basic forms of manipulation.

While both M&S and Co-op declined to comment, the consequences of the M&S breach are already being felt. Shares dropped 4% on Tuesday and are down 12% since the cyber incident was disclosed on April 22. The company halted online orders for clothing and home products via its website and app on April 25, with no timeline for resumption. Some food product availability has also been disrupted.

Deutsche Bank analysts estimate the incident has cost M&S around £30 million ($40 million) so far, with an ongoing weekly impact of approximately £15 million. Though cyber insurance may offset part of the loss, it typically covers a limited time period. The broader risks include loss of consumer trust, data breach fines, and long-term reputational damage.

Ciaran Martin, former CEO of the NCSC, noted that the recovery time for such attacks is often lengthy due to the need to completely rebuild compromised IT networks.

Meanwhile, a group identifying as DragonForce claimed responsibility for attacking both M&S and Co-op, as well as stealing staff and potential customer data from the latter. The same group also claims responsibility for attacking Harrods. The report also links the cyberattack on M&S to the Scattered Spider” hacking collective, known for using DragonForce ransomware, although the NCSC said it could not confirm the connection.

Datadog Raises 2025 Revenue Outlook as AI-Fueled Cloud Security Demand Surges

Datadog has raised its full-year 2025 revenue forecast and posted better-than-expected first-quarter sales, propelled by strong demand for AI-driven cloud security and monitoring tools and a growing base of large enterprise clients.

The cloud infrastructure and observability provider now expects 2025 revenue between $3.22 billion and $3.24 billion, up from its earlier range of $3.18 billion to $3.20 billion, and above Wall Street’s $3.20 billion consensus, according to LSEG.

Datadog’s first-quarter revenue rose 25% year-over-year to $761.6 million, beating analyst expectations of $741.5 million. Adjusted earnings came in at 46 cents per share, also topping forecasts of 43 cents.

CEO Olivier Pomel highlighted rapid innovation across the Datadog platform, stating the company is helping customers “observe, secure, and act” in cloud environments increasingly shaped by artificial intelligence.

Datadog also announced the acquisition of Eppo, a feature flagging and experimentation platform, to enhance its AI and analytics capabilities and support faster, lower-risk product development.

Newer services like App Builder and On-Call are showing strong uptake, and security monitoring is gaining substantial traction among clients. Datadog ended the quarter with approximately 3,770 customers generating over $100,000 in annual recurring revenue, a 13% year-over-year increase.