Delaware court reverses $1 billion damages ruling against Byju Raveendran

In 2022, Byju’s Alpha transferred $533 million to Camshaft Capital, a small Miami-based hedge fund that had very limited assets under management and no established investing track record

The Delaware Bankruptcy Court has reversed the damages portion of its earlier default judgment that had ordered Byju’s founder Byju Raveendran to pay more than $1 billion, after concluding that the issue of damages had not yet been finally determined. In an order dated December 8, 2025, Judge Brendan Shannon said a fresh phase of proceedings will now begin in January 2026 to decide what damages, if any, should be awarded against Raveendran.

The latest order follows a motion moved by Raveendran to correct the court’s November 20 default judgment.

The court has reversed only the damages determination in the November 20 order. In that earlier ruling, the court had entered a default judgment against Raveendran and simultaneously assessed damages of about $1.07 billion across multiple claims related to fiduciary breaches, conversion and civil conspiracy.

In its December 8 communication, the court said it was clear that under the parties’ original understanding, the question of damages was meant to be decided later, after default was established. It has now amended its earlier order to remove the portions that fixed monetary damages against Raveendran.

This means the finding of default remains, but the dollar liability has been taken off the table for now.

For now, the $1 billion damages award does not stand. While Raveendran technically remains in default on the claims, the court has made it clear that no final damages have yet been determined. A fresh round of legal proceedings will now decide whether damages should be imposed, and if so, how much.

The court has directed both sides to submit detailed arguments on damages by January 7, 2026, after which it will decide whether to hold oral hearings or rule based on written submissions.

The November 20 default judgment arose from claims linked to Byju’s Alpha, the company’s US-based financing arm that was set up in Delaware in 2021 to raise and hold a $1.2 billion term loan from global lenders. Byju’s Alpha had no operating business and functioned mainly as a loan-holding vehicle.

In 2022, Byju’s Alpha transferred $533 million to Camshaft Capital, a small Miami-based hedge fund that had very limited assets under management and no established investing track record. The resulting investment interest was later moved to an affiliated entity and then to an offshore trust.

The bankruptcy estate of Byju’s Alpha alleged that these transfers were carried out to place the money beyond the reach of lenders.

Based on these allegations, the court on November 20 had awarded $533 million on one count related to aiding and abetting breach of fiduciary duty, and $540.6 million on other counts including breach of fiduciary duty, conversion and civil conspiracy. That monetary determination has now been withdrawn.

The court has now directed both sides to simultaneously file detailed briefs on damages in early January. These submissions must also include each side’s proposed form of judgment order showing exactly what they believe the court should award.

Once these filings are made, the court will decide whether oral arguments are needed or whether it can determine damages based purely on written submissions. A fresh order on damages will be passed only after this process is completed.

In a statement issued by the founders of Think & Learn Pvt. Ltd., the parent company of Byju’s, Raveendran said the reversal confirms that he has “not been found liable to pay a single dollar in damages” so far. The founders accused the lenders’ agent GLAS Trust of misleading the Delaware court and other courts with incomplete or incorrect information.

They claimed the $533 million was not diverted for personal benefit but was invested into the Indian parent company in compliance with local laws. Raveendran has indicated that he is considering further legal action against GLAS Trust and related parties.

The next milestone will be in January 2026, when both sides submit their written arguments on damages. Only after that process will the court determine whether Raveendran must ultimately pay any monetary amount, and if so, how much. Until then, there is no enforceable $1 billion payment obligation in place, though the litigation itself remains very much active.