Delware court reverses $1 billion judgment against Byju Raveendran

The legal team of Byju Raveendran, founder of edtech firm Byju’s, said the Delaware court has amended the $1 billion judgment against Raveendran after fresh submissions made through a motion to correct the judgment of November 20, 2025.

It said the court agreed that damages had not been determined and ordered a new phase to commence in early January 2026 to determine any damages related to claims against Raveendran.

The legal team alleged that GLAS Trust and the lenders withheld or misrepresented information, misleading courts and the public, and contributing to the collapse of the business, the loss of around 85,000 jobs, impacting 250 million students, and the destruction of tens of billions of dollars in enterprise value.

Raveendran is considering further action against GLAS Trust and others for that conduct.

“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. We also intend to demonstrate that these plaintiffs have sought to mislead courts in India and elsewhere to gain advantage in those court proceedings by harassing and damaging Byju Raveendran, Divya Gokulnath and Riju Ravindran. We reserve the right to seek sanctions against plaintiffs’ counsel for their conduct in these proceedings. We will seek the necessary remedy in the Delaware courts and through the $2.5 billion lawsuit that we intend to file prior to the end of the year,” said Michael McNutt, litigation advisor for Raveendran.

Related to the Delaware court proceedings, in a cross-border legal escalation, Raveendran said he will submit evidence before US courts to support his claim that GLAS Trust and the resolution professional (RP) repeatedly misled the Delaware court, Indian and other courts, and the public by alleging that $533 million (“Alpha Funds”) was diverted by the founders for their personal benefit.

The legal team said GLAS Trust’s sworn statements that it “does not know” where the money went are false.

It alleged that a review of information in the possession of GLAS Trust since at least April 2025 demonstrates that the monies lent to Alpha and sent by OCI to companies owned by Raveendran were invested in Think & Learn in compliance with relevant Indian laws and not “siphoned off” to the founders. It said evidence obtained by GLAS Trust’s lawyers in other proceedings, and later obtained by Raveendran and his counsel, shows GLAS Trust and Shailendra Ajmera, the RP of Think & Learn, had visibility into the use of funds from the Alpha loan guaranteed by Think & Learn.

In addition, the legal team said financial records of Think & Learn available publicly verify that Raveendran and entities controlled by him invested more than $475 million by purchasing shares in Think & Learn in the same period. It said the claims of the RP of Think & Learn against the founders in relation to the monies are baseless.

The evidence will be submitted as part of a full appeal against the amended judgment of the Delaware bankruptcy court of December 8, 2025, and as part of a claim to be filed against relevant parties previously announced with a value of more than $2.5 billion. Raveendran will also share the evidence with Indian courts in the coming weeks.

A $1.07 billion default judgment was recently given against Raveendran by a Delaware bankruptcy court. The judgment came after Byju’s Alpha and US lender GLAS Trust Company LLC sought repayment of funds they allege were improperly diverted. The court found Raveendran had been evasive on multiple occasions and awarded $533 million on one count and $540.6 million on three other counts, while also ordering a full accounting of the disputed Alpha Funds.

Byju’s Alpha was incorporated in Delaware in 2021 as a special-purpose vehicle for a $1.2 billion term loan. Lenders later took control and alleged $533 million was “round-tripped” to Raveendran and his affiliates, a claim the founders reject.