'damage To Reputation': Byju's Founders Gear Up For $2.5 Bn Legal Battle; Full Details

BYJU's founders Byju Raveendran and Divya Gokulnath are preparing to record ineligible claims exceeding $2.5 cardinal against Glas Trust Company LLC and different entities, some successful India and abroad, alleging harm to their individual and business reputation. The move comes amid a high-stakes firm conflict complete nan early of edtech patient Think & Learn, which owns nan BYJU’S brand.

In a connection issued done litigation advisor Lazareff Le Bars Eurl, elder counsel J Michael McNutt said: "BYJU's founders reserve each authorities to bring actions against those parties that person caused harm to them personally and their businesses, including Think & Learn. The behaviour earlier nan Courts by Alpha, Glas Trust and its counsel has been reprehensible and improper successful our view. We reserve nan correct to usage each ineligible intends to get justness for BYJU’s founders."

According to McNutt, further claims are being prepared successful different jurisdictions, and nan monetary harm sought is "not little than USD 2.5 billion." He added: "Such claims to beryllium issued by each aliases immoderate of BYJU’s founders are expected to petition monetary damages of not little than USD 2.5 billion."

Glas Trust is nan trustee for lenders to which BYJU'S owes $1.2 cardinal nether a word indebtedness facility. The institution has revenge aggregate ineligible proceedings against nan edtech patient and its founders, including insolvency petitions and a civilian suit successful Delaware, USA. At present, Think & Learn is undergoing Corporate Insolvency Resolution Process (CIRP) initiated by Glas Trust, whose authority is besides being contested.

BYJU'S founders declare Glas Trust holds only 17.38% of nan voting authorities of nan lender consortium. "Byju is actively participating successful a Delaware Court process initiated successful early April 2025 against him by nan Glas Trust-bankrupt subsidiary," nan counsel said, adding, "Byju vigorously denies each allegations made against him successful those proceedings and is defending himself successful those proceedings."

The Delaware tribunal precocious issued a civilian contempt bid dated July 7, 2025, which Byju is challenging. "That Civil Contempt Order concerns requests for accusation that are duplicative of matters already earlier nan Indian Courts," nan counsel said. "Byju and his counsel are evaluating really to reside that Order and reserve each rights."

The suit besides stems from a abstracted lawsuit revenge by BYJU’S Alpha, a US-based typical intent conveyance created to person nan Term Loan B funds. BYJU’S Alpha has accused Byju Raveendran, Divya Gokulnath, and Anita Kishore of executing a "lawless scheme" to divert USD 533 cardinal of indebtedness proceeds — charges which are being contested by nan founders.

McNutt besides clarified: "There is nary tribunal bid successful immoderate jurisdiction, including successful India aliases nan United States, ordering nan costs by Byju aliases Gokulnath of immoderate magnitude to Think & Learn, aliases immoderate entity related to Think & Learn."

The ineligible standoff continues moreover arsenic nan Supreme Court of India has allowed nan insolvency lawsuit to proceed, reversing an earlier dismissal by nan National Company Law Appellate Tribunal (NCLAT) successful a abstracted plea revenge by BCCI.

(With inputs from PTI)

Published on: Jul 17, 2025 9:50 PM IST