‘Byju’s founders reserve all rights to bring actions against those parties that have caused damage to them personally and to their businesses.’
IMAGE: Byju’s CEO Byju Raveendran’s photograph on his company website, July 17, 2024. Photograph: Dado Ruvic/Illustration/Reuters
The founders of embattled education technology (edtech) company Byju’s are preparing legal action to seek at least $2.5 billion in damages from investors and lenders, whom they blame for harming their business and personal standing.
The lawsuits being planned target parties the founders say contributed to the downfall of Think & Learn, Byju’s parent company, during a prolonged dispute over control of the startup.
Some claims have already been filed in Indian courts against Glas Trust, a former subsidiary that now seeks control over parts of the business.
‘Byju’s founders reserve all rights to bring actions against those parties that have caused damage to them personally and to their businesses, including Think & Learn,’ said J Michael McNutt, senior litigation advisor, Lazareff Le Bars Eurl.
‘The claims to be issued by all or some of Byju’s founders are expected to request monetary damages of not less than $2.5 billion,’ McNutt said.
The legal offensive represents an escalation in the bitter fight that has engulfed one of India’s most prominent startups.
Byju’s, once valued at $22 billion, has faced mounting financial pressures and regulatory scrutiny as disputes with investors intensified.
This included a battle with US lenders who are demanding $1 billion in unpaid dues, triggering the firm’s insolvency.
The worth of once most-valued Indian startup is zero now, founder Byju Raveendran told reporters recently as he called for rebuilding the erstwhile empire from the scratch, brick by brick.
Byju Raveendran and another founder Divya Gokulnath vigorously dispute all claims made against them by the resolution professional (RP) of Think & Learn in the Corporate Insolvency Resolution Process (CIRP) procedure and by Glas Trust together with bankrupt former Delaware subsidiary of Think & Learn Alpha Inc.
In Indian courts, the founders are already contesting the commencement of the CIRP procedure of Think & Learn Private Limited, the standing of Glas Trust in those proceedings, the removal of the RP requested due to a conflict of interest, and other relevant complaints.
The founders said there is no court order in any jurisdiction, including in India and the US, ordering the payment by Byju Raveendran or Divya Gokulnath of any amount to Think & Learn, or any entity related to Think & Learn, including, but not limited to, Alpha Inc, which is now controlled by Glas Trust.
In a legal action in India, the founders said the same parties have abusively commenced the liquidation of several subsidiaries of Think & Learn.
Alpha Inc was placed into liquidation in February 2024 by the director appointed by Glas Trust after the lenders of a credit agreement took the shares of Alpha Inc in 2023.
Byju’s founders have disputed those actions and the ability of Glas Trust to represent those lenders in proceedings in India and elsewhere.
Delaware court proceedings
Byju Raveendran said he is actively participating in a Delaware court procedure initiated in early April 2025 against him by the Glas Trust bankrupt subsidiary.
Raveendran disputes the jurisdiction of that court to determine the claims made against him.
He also vigorously denies all allegations made against him in those proceedings. He said that he is defending himself in those proceedings.
Raveendran is also aware of the order of civil contempt issued on July 7 this year in those Delaware proceedings, and has sought reconsideration of that order.
That civil contempt order concerns requests for information that are duplicative of matters already before Indian courts.
Raveendran and his counsel are addressing those matters before the Indian courts as well.
Raveendran said he and his counsel are evaluating how to address that civil contempt order and reserve all rights.
Gokulnath too is actively participating in that same Delaware court procedure initiated against her by the former subsidiary of Think & Learn and Glas Trust.
She disputes the jurisdiction of that court to determine the claims made against her. She also vigorously denies all allegations.
Feature Presentation: Ashish Narsale/Rediff
