BYJU's Founders Prepare to Sue for $2.5 Billion Amid Legal Turmoil

In a significant legal move, BYJU's founders, Byju Raveendran and Divya Gokulnath, are preparing to file a lawsuit exceeding $2.5 billion against Glas Trust and others. This action comes amid ongoing insolvency proceedings and disputes over claims made by Glas Trust, which represents lenders owed $1.2 billion by BYJU's. The founders assert that their reputation and business have suffered due to the actions of Glas Trust and its affiliates. As they navigate this complex legal landscape, the founders are also contesting various claims in both Indian and US courts, raising questions about the future of the edtech giant.

By Narendra Chaudhary Jul 17, 2025, 22:25 IST

Legal Action Against Glas Trust

New Delhi: The founders of the troubled edtech company BYJU's, Byju Raveendran and Divya Gokulnath, are set to initiate a lawsuit exceeding $2.5 billion against Glas Trust and other parties, citing harm to their reputation and business interests, as stated by their legal representatives on Thursday.

The legal action will be pursued both in India and internationally, according to the announcement.

Lazareff Le Bars Eurl, Senior Litigation Advisor, J Michael McNutt, expressed that the founders of BYJU's are prepared to take legal measures against those who have allegedly caused them personal and business damage, including Think & Learn. They criticized the behavior of Alpha, Glas Trust, and their legal counsel as unacceptable.

Glas Trust Company LLC, based in the US, acts as the trustee for lenders to whom BYJU's owes $1.2 billion. However, the founders dispute the claims made by Glas Trust.

The legal representatives indicated that claims have already been filed in India against Glas Trust, which was previously a subsidiary of Think & Learn, and other involved parties.

Further claims are being formulated for submission in additional jurisdictions, with expectations of seeking at least $2.5 billion in damages, McNutt noted.

Currently, Think and Learn, the owner of the BYJU's brand, is undergoing insolvency proceedings initiated by Glas Trust, representing US-based lenders.

According to the founders, Glas Trust only holds 17.38 percent of the voting rights within the consortium of term loan providers.

Glas Trust has initiated legal actions against BYJU's and its founders in US courts.

The agent for the US lenders has also approached the Supreme Court of India to contest the dismissal of the insolvency case against BYJU's by the National Company Law Appellate Tribunal, following an appeal from BCCI.

The Supreme Court ruled in favor of Glas Trust, and the Corporate Insolvency Resolution Process (CIRP) litigation against BYJU's is ongoing.

The founders are challenging the case and have filed a motion to dismiss the Interim Resolution Professional, alleging connections to Glas Trust through consultancy firm EY.

In a related development, Glas Trust now oversees BYJU's Alpha, a special financing vehicle created by BYJU's to secure Term loan B funds.

BYJU's Alpha has filed a lawsuit against Byju Raveendran, Divya Gokulnath, and Anita Kishore, accusing them of orchestrating a scheme to misappropriate $533 million in loan proceeds.

The legal counsel emphasized that there is no court ruling in any jurisdiction, including India or the US, mandating Byju or Gokulnath to pay any amount to Think & Learn or its affiliates.

Byju is actively involved in a Delaware Court case initiated against him by the Glas Trust-bankrupt subsidiary, disputing the court's jurisdiction over the claims.

He firmly denies all allegations made against him in these proceedings and is mounting a defense.

The counsel's statement also mentioned Byju's awareness of a Civil Contempt Order issued on July 7, 2025, in the Delaware proceedings, for which he has sought reconsideration.

This order pertains to requests for information that overlap with issues already being addressed in Indian courts. Byju and his legal team are working on how to respond to this order while preserving all rights.