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

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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.”

Flock Safety Raises $275 Million to Fund Manufacturing and R&D Expansion

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Flock Safety, a U.S.-based startup specializing in surveillance technology, has secured $275 million in new funding, led by Andreessen Horowitz, to expand its operations. The funding will be used to support the development of a manufacturing plant and to further explore new products, including drones.

The investment has valued Flock Safety at $7.5 billion, a significant increase from its previous valuation of $4.8 billion in the previous funding round last year. With this latest funding, the startup’s total capital raised exceeds $950 million, positioning it among the most well-funded startups in the region, according to PitchBook data.

This marks the third investment by Andreessen Horowitz in Flock, a notable move by the venture capital firm. Greenoaks Capital and Bedrock Capital also participated in the funding round.

Flock Safety provides security cameras and software aimed at helping law enforcement agencies and businesses combat crime. The company has reported surpassing $300 million in annual recurring revenue (ARR), reflecting a 70% year-over-year growth. In preparation for an eventual public listing, Flock has brought in Brandon Simins as its new CFO this year, although it has not set a specific timeline for the listing.

A significant part of the funding will go toward the construction of a 100,000-square-foot manufacturing facility in Georgia, where Flock plans to begin the production of U.S.-manufactured drones by 2025. Garrett Langley, CEO of Flock, expressed excitement about bringing more manufacturing to the U.S., stating that it would provide better control over the supply chain and further their mission to combat crime.

Founded in 2017, Flock Safety’s surveillance system leverages artificial intelligence (AI) to provide insights for investigations, such as identifying car plates. The company now serves over 4,800 law enforcement agencies and nearly 1,000 businesses, including major retailers and healthcare providers. Enterprise businesses account for approximately 30% of its revenue.

Investing in startups that sell to law enforcement is somewhat uncommon for Silicon Valley investors, but David George, general partner at Andreessen Horowitz, highlighted Flock’s growth as evidence of the large market for such solutions. “Flock Safety has one of the most compelling ROI (return on investment) equations we’ve ever seen in software or hardware markets,” said George. He added that Flock’s widespread penetration into police departments and its high market share position it for a venture-scale outcome.