Byju’s founders to sue Glas Trust and lenders for $2.5 mn over reputational harm
The lawsuits, which are currently being planned, target parties whom the founders allege played a role in the downfall of Think & Learn, the parent company of Byju’s.
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Byju’s founders Byju Raveendran and Divya Gokulnath are pursuing legal action against Glas Trust and other lenders to the edtech company, seeking $2.5 million in damages. The founders allege that the lenders’ actions have harmed both their business and personal reputations, stated a media report.
The lawsuits, which are currently being planned, target parties whom the founders allege played a role in the downfall of Think & Learn, the parent company of Byju’s. Some legal claims have already been filed against Glas Trust, a former subsidiary, which now seeks control over parts of the business.
Glas Trust, which represents Byju’s U.S.-based lenders, had extended $1.2 billion in term loans to the edtech company.
Riju Raveendran, a director at Think & Learn, filed a petition last month with India’s National Company Law Tribunal (NCLT), seeking the removal of Glas Trust as a financial creditor and from the company’s Committee of Creditors, added the report.
Glas Trust has also filed a lawsuit in a U.S. bankruptcy court against Byju’s founders and the company’s former Chief Strategy Officer, Anita Kishore. The trust alleges that they orchestrated a scheme to conceal and misappropriate $533 million from the $1.2 billion loan taken by Byju’s U.S. subsidiary, Alpha.
On July 7, the court held Byju’s in civil contempt for failing to comply with its orders to produce documents related to the case.
Divya Gokulnath, who is also participating in the U.S. proceedings, has challenged the court’s jurisdiction over the claims made against her and has denied all allegations, further added the report.
