Byju's Founders Mulls to Sue Glas Trust for $2.5 Billion Over Reputational Damage

The legal battle surrounding edtech giant Byju’s has intensified, with founders Byju Raveendran and Divya Gokulnath preparing to sue Glas Trust and other lenders for $2.5 billion in damages, as per news reports. 

The couple alleges that the reputational damage caused by the lenders’ conduct justifies legal action in both Indian and international courts. This escalation comes at a time when Byju’s is already embroiled in bankruptcy proceedings in India and the US.

Founders Target Glas Trust Over Reputational Harm

Byju’s legal representatives at Paris-based Lazareff Le Bars Eurl confirmed that the lawsuits will seek compensation for personal and business harm caused by Glas Trust and other lender group members. Glas Trust represents creditors of Byju’s US entity, Alpha, which received a $1.2 billion loan. 

Riju Ravindran, a former director at Think & Learn (Byju’s parent company), has also moved India’s National Company Law Tribunal (NCLT) to remove Glas Trust as a financial creditor and from the committee of creditors. J Michael McNutt, senior litigation advisor, described Glas Trust’s courtroom conduct as “reprehensible and improper.”

US Court Action and Ongoing Global Proceedings

The US-based lender group has accused Raveendran, Gokulnath, and former chief strategy officer Anita Kishore of orchestrating a scheme to “conceal and steal” $533 million from the $1.2 billion loan. On 7 July, a US court held Raveendran in civil contempt for non-compliance regarding key documents. 

His lawyers say he is seeking reconsideration, arguing that the matter overlaps with issues already being addressed in Indian courts. Gokulnath, meanwhile, is challenging the court's jurisdiction and has denied all charges against her. Additional claims are reportedly being drafted across jurisdictions.

Bankruptcy Petitions and Fraud Allegations

Amid the cross-border disputes, both Think & Learn and Alpha are undergoing separate insolvency proceedings. In June, an EY-backed insolvency resolution professional filed cases before the NCLT, accusing the founders of fraudulent asset transfers and seeking compensation under India’s Insolvency and Bankruptcy Code. These suits aim to reverse questionable transactions executed under the company’s previous management.

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Conclusion

Byju’s founders are intensifying their legal defence amid mounting cross-border litigation. As the dispute over the $1.2 billion loan escalates, both Indian and US courts are witnessing a complex legal battle involving accusations of fraud, reputational damage, and insolvency violations. The outcome could significantly shape the future of Byju’s and its leadership.

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