US court orders Byju Raveendran to pay over $1 billion in default judgement - The Economic Times
A U.S. bankruptcy court in Delaware has issued a default judgment against Byju Raveendran, founder of edtech company Byju’s, requiring him to personally pay more than USD 1 billion. The judgment arises from a case brought by Byju’s Alpha and the GLAS Trust, who accused Raveendran of evading court-ordered discovery and mismanaging funds. In particular, the court found that USD 533 million had been improperly transferred in 2022, and another USD 540.6 million tied to a hedge fund interest was diverted in 2023. The court has also ordered Raveendran to provide a detailed and honest accounting of the so-called “Alpha Funds” and their subsequent transfers. This ruling compounds ongoing legal troubles for Byju’s, with previous contempt orders and fines already imposed for lack of cooperation.
The Key points
- A Delaware Bankruptcy Court has ruled that Byju Raveendran must pay over USD 1.07 billion in a default judgment.
- The judgment stems from a petition by Byju’s Alpha and the U.S.-based GLAS Trust.
- The court held that Raveendran repeatedly failed to comply with discovery orders, calling it a “strategic pattern” of non-cooperation.
- He was earlier fined USD 10,000 per day for contempt, but these sanctions remained unpaid.
- USD 533 million relates to a 2022 transfer of funds from Byju’s Alpha that the court found unjustified.
- An additional USD 540.6 million is connected to a 2023 transfer involving a hedge fund (Camshaft LP interest).
- The court has ordered Raveendran to produce a “full and accurate accounting” of how the Alpha Funds were used and moved.
- The court described the USD 1+ billion judgment as “extraordinary” but justified given the unique and serious circumstances.
- Raveendran’s legal team plans to appeal, arguing he was denied the opportunity to present his defence properly.
- The ruling adds to broader legal and financial challenges for Byju’s, which has faced multiple lawsuits and debt issues globally.
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