Byju’s Founder to Seek $2.5 Bn in Damages
BYJU’S founder Byju Raveendran along with co-founder Divya Gokulnath have announced plans to file lawsuits seeking at least US $2.5 billion in damages. The claim targets Glas Trust — the lenders’ representative — and others they hold responsible for alleged wrongful actions that harmed both their business and personal reputations.
What Triggered the Suit
The founders say they have fresh evidence showing that the $533 million, which lenders claimed was diverted from BYJU’S US-subsidiary (Alpha Inc.), was fully accounted for. They argue the earlier court ruling that ordered damages was based on incomplete and misleading submissions by Glas Trust. The $2.5 billion suit is being framed as both compensation for reputational and financial damage and a corrective legal challenge to past judgments.
Ongoing Bankruptcy Fallout
The legal action comes shortly after a U.S. bankruptcy court ordered Raveendran to pay over $1.07 billion following what the court found to be fraudulent transfer of funds. The founders dispute both the transfer-diversion allegations and the legal basis of the judgment. They also question the jurisdiction and procedural fairness of the court proceedings, and intend to pursue claims in multiple jurisdictions.
Stakes and Broader Implications
Given the steep damage claim and cross-jurisdictional legal battles, the case is shaping up to be one of the most significant lawsuits in India’s startup-sector history. The outcome could have major repercussions for creditors, investors and future governance standards in high-growth firms.
