Byju’s founder, Byju Raveendran, is preparing to file a $2.5 billion lawsuit against GLAS Trust in the United States, while submitting new evidence to counter claims that $533 million was diverted from Byju’s American financing entity, Byju’s Alpha.

This move comes shortly after a Delaware bankruptcy court ordered Raveendran to pay over $1.07 billion in a default judgment. The US court had noted that Byju’s founders did not cooperate with efforts to track nearly half of a $1.2 billion US term loan issued in 2021.

Byju Raveendran’s Response

Raveendran contested the court’s ruling, stating that he was not given sufficient time to arrange legal representation, despite requesting a 30-day extension. Alongside challenging the order, he announced plans to file a parallel $2.5 billion damages suit against GLAS Trust and its associates in another US court.

He maintained that the $533 million in question was fully accounted for. According to Raveendran, $479.62 million was routed from loan manager OCI to Revere Capital, then to Byju’s entities, and ultimately to the parent company Think & Learn Pvt Ltd (TLPL). The funds were used for acquisitions totaling $3 billion, including the purchase of Aakash Educational Services.

Raveendran emphasized that the documents presented by GLAS Trust confirm the money trail. He also submitted a motion in the Delaware Bankruptcy Court seeking correction of what he called a premature damages determination, arguing that the court mistakenly included a damages award as part of a sanction order for delayed document production, even though GLAS Trust had withdrawn its request for damages in September.

He stated, “It is simply outrageous that I have been attacked in this manner and, more importantly, that BYJU’s customers and employees have been impacted by this attack based on the pure greed of these Lenders and GLAS Trust. These parties will now be brought before the courts and be required to answer some very tough questions.”

This legal battle marks the latest escalation in the ongoing dispute over Byju’s Alpha’s US financing operations and could have major implications for the company’s global operations.