Apple Moves to Dismiss Suit Against Spyware Firm NSO Group

Apple wants to dismiss its 2021 lawsuit against Israeli spyware maker NSO Group out of concern that continuing the lawsuit could expose sensitive threat intelligence information.

See Also: What GDPR Means for Cybersecurity

The Silicon Valley-based device behemoth said disclosing this information – even under stringent court controls – could jeopardize Apple’s ability to protect against spyware attacks, the company said in a filing Friday. Apple said reports that Israeli officials seized sensitive files from NSO Group heightened concerns about the difficulty of obtaining crucial discovery materials and the risks of proceeding.

“Apple knows and appreciates that this court would take the utmost care with the sensitive information relevant to this case,” the company said. “But it is also aware that – now more than ever – predator spyware companies, including those not before this court, will use any means to obtain this information.”

Why Apple Wants to Walk Away From Its Lawsuit

Apple said the emergence of other malicious actors in the spyware landscape means NSO is no longer the dominant player, meaning a victory in the court case would have a less significant impact than three years ago. Apple’s six-page motion asks U.S. District Judge James Donato to dismiss the case without prejudice, which would allow for potential refiling in the future if needed.

Apple in its lawsuit accused NSO Group of targeting the company’s devices and users through the development and distribution of Pegasus spyware. The use of Pegasus for surveillance activities against human rights activists, journalists and government officials has been widely criticized (see: Apple Sues NSO for Product and Service Abuse).

Apple said continuing with the lawsuit would require the company to share sensitive, proprietary threat intelligence data with third parties, including the information used to prevent spyware attacks from NSO Group’s Pegasus and other malicious actors. Given that Apple uses this information to shield users from spyware attacks, any leak or exposure could undermine the company’s ability to thwart future threats.

Apple also said NSO is no longer the dominant force in the spyware industry, meaning that even the elimination of NSO wouldn’t significantly reduce the risk posed by other players in the market. Apple said government-led efforts such as the March 2023 U.S. executive order to address spyware risk are often more effective than legal actions against individual companies since they address broad, systemic issues.

How Apple Has Improved Its Security Since 2021

A July 2024 report from The Guardian found Israeli officials seized files from NSO Group’s headquarters, raising concerns about whether Apple could obtain the evidence it needs in this case. Apple argues it could face major hurdles in obtaining critical discovery materials from NSO Group, especially if sensitive documents were already confiscated by Israeli authorities and are kept out of Apple’s reach.

Improvements in Apple’s threat detection since the lawsuit was filed in November 2021 have led to stronger protection against spyware attacks, enabled the company warn users and helped expose new spyware infrastructure. Apple also debuted a feature to defend users against targeted spyware attacks by limiting certain phone functionalities, which had successfully thwarted all spyware attacks as of December 2023 (see: Apple Fixes Zero-Click Bugs Exploited by NSO Group’s Spyware).

Apple argues that NSO Group wouldn’t suffer any legal prejudice from dismissal of the case since the trial is still 15 months away and discovery is still ongoing, meaning NSO isn’t on the verge of a legal victory that would be unfairly disrupted by the dismissal. Apple said NSO Group hasn’t invested significant resources into preparing for trial, and dismissing the case would not cause the company major financial harm.

While Apple has serious concerns about the spyware industry and the risk posed by companies such as NSO, the company said it must prioritize the security and privacy of its users above all else. The company pledged to continue its broader fight against spyware through technical advancements such as lockdown mode as well as government partnerships.