Byju's founders plan $2.5 billion lawsuit against investors, lenders

Business Standard

6 days ago

The founders of embattled education technology company Byju's are preparing legal action seeking at least $2.5 billion in damages from investors and lenders they blame for harming their business and personal standing.
The planned lawsuits 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 claims 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 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.'
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 what was once India's most valued startup is now zero, Raveendran told reporters recently, as he called for rebuilding the erstwhile empire from scratch, brick by brick.
Byju's founders, Byju Raveendran and Divya Gokulnath, vigorously dispute all claims made against them by the Resolution Professional of Think & Learn in the Corporate Insolvency Resolution Process (CIRP) and by Glas Trust together with the bankrupt former Delaware subsidiary of Think & Learn Private Limited.
In Indian courts, the founders are already contesting the commencement of the CIRP of Think & Learn Private Limited, the standing of Glas Trust in those proceedings, the removal of the Resolution Professional due to a conflict of interest, and other related complaints.
The founders said there is no court order in any jurisdiction, including India or the United States, requiring the payment by Byju Raveendran or Divya Gokulnath of any amount to Think & Learn or any related entity, including but not limited to the bankrupt Delaware former subsidiary of Think & Learn Private Limited, Alpha Inc., now controlled by Glas Trust.
In a legal response to court proceedings in India, the founders said the same parties have abusively commenced the liquidation of several subsidiaries of Think & Learn Private Limited. A former Delaware subsidiary, Alpha Inc., was placed into liquidation in February 2024 by a director appointed by Glas Trust after the lenders of a Credit Agreement took over Alpha Inc.'s shares in 2023. Byju's founders have disputed those actions and Glas Trust's ability 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 in those proceedings and said he is defending himself.
Raveendran is also aware of the Order of Civil Contempt issued on 7 July 2025 in those Delaware proceedings and has sought reconsideration of that order. The Civil Contempt Order concerns requests for information that are duplicative of matters already before Indian courts. Byju and his counsel are addressing those matters in Indian courts as well. Raveendran said he and his counsel are evaluating how to address the order and reserve all rights.
The other founder, Gokulnath, is also actively participating in the same Delaware court procedure initiated against her by the former subsidiary of Think & Learn Private Limited and Glas Trust. Gokulnath disputes the jurisdiction of that court to determine the claims made against her. She also vigorously denies all allegations.