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US Judge Finds Israel’s NSO Group Liable for Hacking in WhatsApp Lawsuit

A U.S. judge has ruled in favor of Meta Platforms’ WhatsApp in a lawsuit against Israel’s NSO Group, finding the company liable for exploiting a vulnerability in WhatsApp’s messaging app to install spyware, enabling unauthorized surveillance. U.S. District Judge Phyllis Hamilton of Oakland, California, granted WhatsApp’s motion and found NSO liable for hacking and breach of contract. The case will now proceed to trial, but only to determine the amount of damages.

WhatsApp’s head, Will Cathcart, hailed the ruling as a victory for privacy, stating that spyware companies could no longer hide behind immunity or avoid accountability for unlawful actions. A spokesperson for WhatsApp expressed their gratitude for the decision, reaffirming the company’s commitment to protecting users’ private communications.

Cybersecurity experts, including John Scott-Railton from Citizen Lab, welcomed the ruling as a landmark decision with significant consequences for the spyware industry. He noted that the ruling clarifies that NSO Group is responsible for violating numerous laws, as the company could no longer evade accountability for its actions.

WhatsApp sued NSO in 2019, accusing it of using a vulnerability to access WhatsApp’s servers and install Pegasus spyware on users’ devices. The lawsuit claimed the intrusion enabled the surveillance of 1,400 individuals, including journalists, human rights activists, and dissidents. NSO had defended itself by arguing that its technology was intended to help law enforcement and intelligence agencies combat crime and terrorism.

Despite this defense, NSO failed in its attempt to secure “conduct-based immunity,” which protects foreign officials acting in their official capacity. The 9th U.S. Circuit Court of Appeals upheld the decision in 2021, and the U.S. Supreme Court declined to hear NSO’s appeal, allowing the lawsuit to move forward.

CrowdStrike Seeks to Dismiss Delta Air Lines Lawsuit Over July Cybersecurity Outage

CrowdStrike has moved to dismiss a lawsuit filed by Delta Air Lines related to a July cybersecurity outage that resulted in canceled flights and stranded passengers. The cybersecurity company argues that the suit violates the terms of the contract between the two parties, including a clause that limits CrowdStrike’s liability and caps damages. In its filing, CrowdStrike emphasized that Georgia law prevents Delta from turning a breach of contract claim into tort claims, citing the state’s economic loss rule.

Delta claims that the July incident cost the airline more than $500 million in canceled flights, refunds, and accommodations for affected passengers. The airline is seeking to recover these costs from CrowdStrike, but the full extent of the damage, including reputational harm and the impact of a Department of Transportation investigation, has yet to be quantified. Despite the incident, Delta continues to use CrowdStrike’s cybersecurity services, likely due to the complexity of replacing such a provider in a large organization like Delta.

CrowdStrike contends that it acted swiftly to assist Delta during the outage, but the airline reportedly rejected offers of help. According to CrowdStrike, one message from a Delta executive stated, “We are good for now.” The company also argued that Delta’s internal systems and practices contributed to the scale of the delays and cancellations, with the airline experiencing far more significant disruptions than its industry peers, who recovered more quickly from similar issues.

The cybersecurity company’s stock was heavily impacted by the outage, dropping 44%, but it has since recovered, posting strong results despite lowering its guidance due to the incident. Delta has yet to provide a statement in response to the filing.

 

Meta Urges California Attorney General to Block OpenAI’s For-Profit Conversion

Meta Platforms has called on California’s Attorney General Rob Bonta to intervene and prevent OpenAI from transitioning to a for-profit business model, according to a report by the Wall Street Journal on Friday. In a letter sent to the attorney general on Thursday, Meta expressed concerns that permitting OpenAI to become a for-profit company would create a troubling precedent.

Meta argued that such a move would allow startups to benefit from nonprofit status until they are ready to become profitable, thereby unfairly giving investors the advantages of both nonprofit tax benefits and for-profit gains. The letter cautioned that if OpenAI’s shift to a for-profit model were allowed, it could have “seismic implications” for Silicon Valley.

The company’s concerns center around the potential for nonprofit investors to receive the same financial benefits as traditional for-profit investors, while still enjoying the tax write-offs associated with nonprofit status. Meta has not yet responded to a request for comment, and the California Attorney General’s office was also silent on the issue.

This latest development comes after OpenAI, in its own legal battle, urged a federal judge in California to dismiss Elon Musk’s request to halt the conversion of the company to a for-profit entity. Musk, a former co-founder of OpenAI, filed a lawsuit in August, accusing the organization of prioritizing profit over public good in its AI development.

Musk, who launched his own AI company, xAI, has argued that OpenAI’s shift undermines its mission and represents a violation of contract agreements. In November, Musk sought a preliminary injunction in federal court to stop the transition.

OpenAI has responded by asserting that any restructuring would preserve the nonprofit’s continued existence and ensure it receives full value for its stake in the new for-profit entity, with a mission-driven focus. OpenAI’s chairman, Bret Taylor, emphasized that the nonprofit would continue to thrive and be able to pursue its goals.

In their letter, Meta also expressed support for Musk’s efforts to ensure public interests are considered in the decision to allow OpenAI to convert to a for-profit structure.