US Court Reverses $1B Damages Order Against Byju Raveendran

A US federal bankruptcy court has reversed a $1 billion damages ruling against Byju Raveendran, founder of edtech firm Byju’s, providing temporary relief in the high-profile legal battle with the company’s lenders. The decision was issued by a Delaware bankruptcy court on December 8, 2025, according to an official statement from Think and Learn Pvt Ltd, the parent company of Byju’s.

The reversal follows a default judgment issued last month that had ordered Raveendran to pay over $1 billion, citing his alleged failure to cooperate with efforts to trace nearly half of the proceeds from a $1.2 billion term loan raised in 2021. Creditors, led by GLAS Trust, had accused Raveendran, his wife and co-founder Divya Gokulnath, and an associate of masterminding the diversion of $533 million in loan proceeds.

Raveendran challenged the ruling, arguing that the court did not grant him the 30-day period he requested to appoint US legal counsel. Following a motion to correct the November 20 judgment, the court agreed that damages had not yet been determined and ordered the removal of sections assessing damages against him.

The court has now directed both parties to submit their positions on damages by January 7, 2026, with a new phase of proceedings to begin later that month. Any final judgment will be issued after the damages briefing is completed.

Byju’s founders have consistently denied the allegations, calling them “baseless,” and maintaining that the funds were reinvested into Think and Learn Pvt Ltd to finance the company’s $3 billion acquisition spree. Raveendran’s legal advisor stated that he has not been found liable to pay any damages at this stage and plans to present evidence showing that lenders had full visibility into the use of funds.

Raveendran is also considering counterclaims of up to $2.5 billion against GLAS Trust, alleging misleading statements to courts in the US, India, and elsewhere. The dispute remains unresolved, with further legal proceedings expected in early 2026.