New Delhi: Beleaguered edtech firm BYJU’s founders, Byju Raveendran and Divya Gokulnath, are gearing up to file an over $2.5 billion suit against Glas Trust and others for damage to their reputation and business, a statement from their counsel said Thursday.
The founders are preparing to sue Glas Trust and others in India as well as in foreign countries, according to the statement.
“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,” Lazareff Le Bars Eurl, Senior Litigation Advisor, J Michael McNutt, said in a statement.
Glas Trust Company LLC, a US-based firm, is the trustee for lenders to which BYJU’s owes $1.2 billion. BYJU’S founders have, however, contested Glas Trust claims.
The counsel said claims by BYJU’s founders have already been raised in India against Glas Trust, the former subsidiary of Think & Learn, that Glas Trust now claims to control, and other parties.
“Additional claims are being prepared against those parties in other jurisdictions. Such claims to be issued by all or some of BYJU’s founders are expected to request monetary damages of not less than $2.5 billion,” McNutt said.
At present, Think and Learn – which owns BYJU’s brand, is going through insolvency proceedings initiated following an appeal filed by US-based lenders agent Glas Trust.
According to BYJU’s founders, Glas Trust has the authority to represent merely 17.38 per cent of the voting rights of the consortium of term loan providers.
Glas Trust initiated legal proceedings against BYJU’s and its founders in US courts.
The agent of US-based lenders also approached the Supreme Court of India to challenge dismissal of insolvency case against BYJU’s by National Company Law Appellate Tribunal in an appeal filed by BCCI.
The apex court ruled in favour of Glas Trust and the Corporate Insolvency Resolution Process (CIRP) litigation against BYJU’s is going on.
BYJU’s founders are contesting the case and filed a plea to remove Interim Resolution Professional alleging his link with Glas Trust through consultancy firm EY.
On the other hand, Glas Trust now controls BYJU’s Alpha which was a special purpose financing vehicle established by BYJU’S to receive Term loan B funds.
BYJU’s Alpha has filed a lawsuit against Byju Raveendran, his co-founder and wife Divya Gokulnath, and his consigliere Anita Kishore alleging that each of them co-orchestrated and executed a lawless scheme to conceal and steal USD 533 million of loan proceeds.
The counsel statement said that 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.
“Byju is actively participating in a Delaware Court procedure initiated in early April 2025 against him by the Glas Trust-bankrupt subsidiary. Byju disputes the jurisdiction of that Court to determine the claims made against him. Byju vigorously denies all allegations made against him in those proceedings and is defending himself in those proceedings,” the statement said.
The counsel statement mentioned that Byju is aware of the Order of Civil Contempt issued on July 7, 2025 in those Delaware proceedings and has sought reconsideration of that order.
“That Civil Contempt Order concerns requests for information that are duplicative of matters already before the Indian Courts. Byju and his counsel are addressing those matters before the Indian Courts as well. Byju and his counsel are evaluating how to address that Order and reserve all rights,” the statement said.
PTI
