'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 file legal claims exceeding $2.5 billion against Glas Trust Company LLC and other entities, both in India and abroad, alleging damage to their personal and business reputation. The move comes amid a high-stakes corporate battle over the future of edtech firm Think & Learn, which owns the BYJU’S brand.

In a statement issued through litigation advisor Lazareff Le Bars Eurl, senior counsel J Michael McNutt said: "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. The conduct before the Courts by Alpha, Glas Trust and its counsel has been reprehensible and improper in our view. We reserve the right to use all legal means to obtain justice for BYJU’s founders."

According to McNutt, additional claims are being prepared in other jurisdictions, and the monetary damage sought is "not less than USD 2.5 billion." He added: "Such claims to be issued by all or some of BYJU’s founders are expected to request monetary damages of not less than USD 2.5 billion."

Glas Trust is the trustee for lenders to which BYJU'S owes $1.2 billion under a term loan facility. The company has filed multiple legal proceedings against the edtech firm and its founders, including insolvency petitions and a civil lawsuit in Delaware, USA. At present, Think & Learn is undergoing Corporate Insolvency Resolution Process (CIRP) initiated by Glas Trust, whose authority is also being contested.

BYJU'S founders claim Glas Trust holds only 17.38% of the voting rights of the lender consortium. "Byju is actively participating in a Delaware Court procedure initiated in early April 2025 against him by the Glas Trust-bankrupt subsidiary," the counsel said, adding, "Byju vigorously denies all allegations made against him in those proceedings and is defending himself in those proceedings."

The Delaware court recently issued a civil contempt order dated July 7, 2025, which Byju is challenging. "That Civil Contempt Order concerns requests for information that are duplicative of matters already before the Indian Courts," the counsel said. "Byju and his counsel are evaluating how to address that Order and reserve all rights."

The lawsuit also stems from a separate case filed by BYJU’S Alpha, a US-based special purpose vehicle created to receive the 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 million of loan proceeds — charges which are being contested by the founders.

McNutt also clarified: "There is no court order in any jurisdiction, including in India or the United States, ordering the payment by Byju or Gokulnath of any amount to Think & Learn, or any entity related to Think & Learn."

The legal standoff continues even as the Supreme Court of India has allowed the insolvency case to proceed, reversing an earlier dismissal by the National Company Law Appellate Tribunal (NCLAT) in a separate plea filed by BCCI.

(With inputs from PTI)