Bengaluru, July 18, 2025 — As Byju’s battles insolvency and creditor scrutiny, co-founders Byju Raveendran and Divya Gokulnath are returning fire. They have announced legal claims totaling $2.5 billion against lenders represented by Glas Trust and other parties in both Indian and overseas courts, citing reputational and business harm.
What’s at Stake
This lawsuit comes amid a bitter standoff unfolding in U.S. bankruptcy courts and Indian tribunals. Glas Trust, acting for lenders to Byju’s U.S. arm, Byju’s Alpha Inc., has accused the company’s leaders of concealing $533 million from a $1.2 billion loan — sparking civil contempt proceedings and escalating the dispute.
Byju’s co-founders argue these accusations are part of a coordinated effort targeting their personal and corporate reputation. Their counsel, J Michael McNutt of Lazareff Le Bars, said additional claims will follow in other jurisdictions, targeting parties “that have caused damage … personally and to their businesses” .
Legal Offensive Strategy
The lawsuit covers both defamation and financial damages. In India, Byju’s and Raveendran have already petitioned the NCLT to remove Glas Trust from the creditor panel and have filed caveats in the Supreme Court challenging the authority of foreign proceedings . Meanwhile, in the U.S., Byju’s is contesting jurisdictional claims and seeking revisitation of civil contempt findings.
What It Signals
This aggressive legal response signals a high-stakes defense strategy. Once India’s most valuable startup at a $22 billion valuation, Byju’s is now fighting for survival — and narrative control. Raising a high-value counterclaim could shift leverage in ongoing negotiations and restructuring talks.
Watch This Space
The global legal push follows recent wins for Byju’s including freedom to settle BCCI dues and court validations in India. The next phase will be pivotal: court rulings could determine whether Byju’s reclaims strategic footing or further fragments under legal, financial, and reputational blows.
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