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The report's findings have led to allegations of treason against the Modi government, while calls for a probe intensify.
Investigations, lawsuits, and government restrictions have forced the company to look for prospective buyers.
The government has long been suspected of being a buyer of Pegasus spyware that's sold exclusively to NSO clients.
The lawsuit sheds new light on the exploits used by the surveillance company to deliver the spyware.
The cyber espionage firm is now part of a federal blacklist aimed at restricting exports and transfers of US technology.
This is yet another sign of Pegasus misused and unlawful surveillance carried out by governments to settle personal scores.