Byju's Subsidiary Sues Byju Raveendran And Others For Alleged Theft Of $533 Million

Byju's Alpha, a subsidiary of the Indian edtech company Byju's, has filed lawsuits against Byju and key executives in a US court. The lawsuits allege that Byju Raveendran, co-founder Divya Gokulnath, and consigliere Anita Kishore were involved in the theft of $533 million through "deception and fraudulent financial practices."

Byju's Alpha Inc. is a Delaware-based special-purpose financing vehicle established in 2021 to receive a $1.5 billion term loan.

So what’s the allegation?

This new lawsuit follows a Delaware court's recent judgment against Byju Raveendran's brother, Riju Raveendran, and “Byju’s’ ultimate corporate parent in India.”

"This action is being brought to now hold Byju Raveendran, the former CEO of BYJU’s Alpha, and two more of his co-conspirators—namely his co-founder and close business associate—accountable for their roles in masterminding the theft of more than half a billion dollars,” the lenders of the loan stated.

Furthermore, the lawsuits claim that the defendants used deception and fraudulent financial practices to misappropriate $533 million. The allegations include claims of unauthorized transactions, falsification of records, and other financial irregularities.

The lawsuit was filed in a US court, and Byju's Alpha is seeking damages and other relief. The company claims that the defendant's actions were unlawful and caused significant financial harm.

The lawsuit against Byju's and its key executives has raised serious allegations of financial impropriety and deception. The outcome of the lawsuit will likely have significant implications for the company and its stakeholders.