Home / Business and Economy / Byju's Founder Cleared: $1 Billion Damages Reversed!
Byju's Founder Cleared: $1 Billion Damages Reversed!
10 Dec
Summary
- US bankruptcy court reversed a $1 billion damages ruling against Byju Raveendran.
- Raveendran contested the ruling, citing lack of legal representation time.
- New proceedings to determine damages are scheduled for early January 2026.
A US bankruptcy court has overturned a $1 billion damages judgment against Byju Raveendran, the founder of the ed-tech firm Byju's. The Delaware Court's initial ruling, made last month, had ordered Raveendran to pay over $1 billion due to alleged non-cooperation in locating loan proceeds. Raveendran contested this, asserting he was denied the requested 30 days to appoint a US attorney.
The court's recent order reverses the default judgment, acknowledging that damages had not been properly determined. New proceedings are scheduled for early January 2026 to establish any damages related to the claims against Raveendran. This follows earlier accusations by creditors, including GLAS Trust, alleging Raveendran orchestrated the diversion of $533 million in loan funds.
Byju's founders have vehemently denied these allegations, claiming the loan proceeds were reinvested in the company. They also allege that GLAS Trust withheld information, contributing to the company's business collapse. Raveendran is reportedly considering further legal action against GLAS Trust for their conduct.
