The Delaware court has amended its earlier $1 billion judgment against Byju’s founder Byju Raveendran, ordering a new damages phase in January 2026 after determining that no damages have yet been established.
Court Orders Fresh Damages Proceedings for January 2026
The Delaware bankruptcy court has reversed and amended its earlier $1 billion default judgment against Byju Raveendran, founder of Indian edtech major Byju’s, following a motion filed by his legal team to correct the November 20, 2025 order. The court agreed that the damages had not been determined and has ordered a new phase of proceedings to commence in early January 2026 to establish any potential damages.
Raveendran’s legal team welcomed the decision, calling it a “significant correction,” and asserted that, as of now, Raveendran is not liable to pay any damages to the plaintiffs.
Allegations Against GLAS Trust and Lenders
According to Raveendran’s counsel, the amended judgment follows submissions alleging that GLAS Trust Company LLC and the lenders had withheld and misrepresented critical information before the court. The team said these actions contributed to the downfall of the business, resulting in the loss of around 85,000 jobs, affecting 250 million students, and wiping out tens of billions of dollars in enterprise value.
Raveendran’s litigation advisor, Michael McNutt, said the founder is considering further legal action against GLAS Trust and others for their conduct.
Raveendran’s Legal Team: “No Liability, No Damage Proven”
In a detailed statement, McNutt said, “Byju Raveendran today has not been found liable to pay a single dollar in damages. During the damages proceedings starting January 2026, we intend to demonstrate that not only have the plaintiffs suffered no damage whatsoever due to his actions, but that they have intentionally misled courts in this and other jurisdictions.”
The team said they would also present evidence showing that the plaintiffs attempted to mislead courts in India and elsewhere “to gain procedural advantage and cause harm” to Raveendran, Divya Gokulnath, and Riju Ravindran. The statement added that sanctions against the plaintiffs’ counsel may be sought for their conduct.
Raveendran’s legal team also confirmed plans to file a $2.5 billion lawsuit against relevant parties before the end of 2025.
Evidence to Be Submitted in US and Indian Courts
The new proceedings come amid a cross-border legal escalation, as Raveendran prepares to present evidence in US courts to support claims that GLAS Trust and the resolution professional (RP) of Think & Learn misled both the Delaware court and Indian authorities.
The team alleged that GLAS Trust’s sworn statements claiming ignorance of the whereabouts of the $533 million “Alpha Funds” are false. They said records from April 2025 show the funds were invested back into Think & Learn in full compliance with Indian laws, not siphoned off for personal use.
They also cited financial documents showing that Raveendran and his controlled entities invested over $475 million by purchasing shares in Think & Learn during the same period, thereby disproving claims of fund diversion.
Background: The Disputed Alpha Funds and Default Judgment
The case stems from the $1.07 billion default judgment issued by the Delaware bankruptcy court earlier this year. The judgment followed allegations by Byju’s Alpha, a Delaware-based special-purpose vehicle incorporated in 2021, and GLAS Trust Company, that $533 million of loan funds were “improperly diverted” by Raveendran and his affiliates.
The court had earlier found Raveendran to be evasive and awarded damages totaling over $1 billion across multiple counts. The funds in question were part of a $1.2 billion term loan secured by Think & Learn, Byju’s parent entity.
Raveendran has consistently denied all allegations of fund diversion, calling them “fabricated and misleading.”
Next Steps in Legal Battle
The amended judgment, dated December 8, 2025, sets the stage for a fresh damages hearing in January. Raveendran’s legal team said they will submit comprehensive evidence during that phase and in a broader appeal against the amended judgment.
They also confirmed that the same evidence will be presented before Indian courts “in the coming weeks” as part of ongoing legal proceedings against GLAS Trust, lenders, and the resolution professional.
