Byju's founder Byju Raveendran.
Credit: Bloomberg Photo
Bengaluru: The Delaware Court has reversed the 1 billion dollars judgment against edtech company Byju's founder, Byju Raveendran, after he made fresh submissions in a motion to correct the November 20, 2025, judgment.
The founders of Think and Learn Pvt Ltd, the parent company of Byju's, in a statement said that the US court agreed that damages had not been determined and ordered a new phase to commence in January 2026 to determine any damages related to claims against Raveendran.
Last month, in a petition filed by Byju's Alpha (Byju's established a US subsidiary Byju's Alpha in 2021 to receive proceeds of Term Loan) and US-based lender GLAS Trust Company, the Delaware Bankruptcy Court slapped Raveendran with a default judgment of over 1 billion dollars, after finding that he repeatedly ignored its orders and also failed to participate in the proceedings.
The founders said Byju Raveendran is considering further action against GLAS Trust and others.
"The significance of the Court’s decision to amend the judgment cannot be overstated. Byju Raveendran today has not been found liable to pay a single dollar in damages to the Plaintiffs. During the damages proceedings starting January 2026, we intend to demonstrate to the Court that not only have the Plaintiffs suffered no damage whatsoever due to actions of Byju Raveendran, but also that the Plaintiffs have intentionally misled the Court in this proceeding and other adversary proceedings," Michael McNutt, litigation advisor for Byju Raveendran, said.
In April this year, Byju's term loan lenders filed a lawsuit against Raveendran, his wife and co-founder Divya Gokulnath and Anita Kishore (former chief strategy officer) in the US Bankruptcy court.
The lawsuit claimed that each of them co-orchestrated and executed a lawless scheme to "conceal and steal 533 million dollars of loan proceeds". But the founders had said that it was fabricated and baseless allegations.
Byju's Alpha was established to receive proceeds of a 1.5 billion dollars Term Loan B. In mid-2022, it started transferring 533 million dollars of the Alpha Funds to Camshaft Capital Fund. On February 1, 2024, Byju's Alpha filed for Chapter 11 bankruptcy.
In a statement on Wednesday, December 10, founders said, "Related to these Delaware Court proceedings and in a major cross-border legal escalation, Byju Raveendran will submit clinching evidence before the US Courts, proving that GLAS Trust and the Resolution Professional (RP) repeatedly misled the Delaware Court, Indian & other Courts, and the public by falsely alleging that 533 million dollars (Alpha Funds) was diverted by the Founders for their personal benefit. GLAS Trust’s sworn statements that it “does not know” where the money went are simply false."
Once valued at 22 billion dollars, edtech firm Byju's' worth became zero in 2024.