US Court Finds BYJU’S, Riju Raveendran Guilty of $533 Mn Fraud
In a shocking turn of events, a US bankruptcy court has found BYJU’S-parent Think & Learn, its founder Byju Raveendran, Riju Raveendran, and hedge fund Camshaft Capital guilty of fraud. The court’s verdict is a significant blow to the ed-tech giant, which has been facing legal troubles in recent times.
As per the court’s ruling, the defendants diverted $533 million from BYJU’S Alpha, the startup’s US arm, to mislead lenders. The court also found that Riju breached his fiduciary duties as a director of BYJU’S Alpha and worked to hide the funds.
This verdict is a result of a lengthy legal battle that began in 2020, when BYJU’S Alpha filed for bankruptcy. The company’s lenders had accused the defendants of misusing funds and hiding the true financial condition of the company.
According to the court’s ruling, the defendants had diverted the funds to obscure accounts, making it difficult for lenders to track the money. The court also found that the defendants had made false representations to lenders about the financial health of BYJU’S Alpha.
The news has sent shockwaves through the financial community, with many questioning the integrity of BYJU’S and its leadership. This is not the first time that BYJU’S has faced legal troubles, having previously faced allegations of financial irregularities and mismanagement.
BYJU’S has been one of the fastest-growing ed-tech companies in the world, with a valuation of over $22 billion. However, the company has faced intense scrutiny in recent times, with many questioning its financial practices and corporate governance.
The court’s ruling is a major setback for BYJU’S, which has been trying to restructure its debt and raise new capital. The company has been facing a cash crunch in recent times, and the loss of $533 million is a significant blow to its financial stability.
Riju Raveendran, the director of BYJU’S Alpha, has been accused of breaching his fiduciary duties and working to hide the funds. The court’s ruling is a major embarrassment for him, and he may face legal consequences for his actions.
Camshaft Capital, the hedge fund that was accused of complicity in the fraud, has also been found liable. The court’s ruling is a significant blow to the fund, which has been accused of profiting from the fraud.
The court’s verdict is a major victory for BYJU’S Alpha’s lenders, who had accused the defendants of misusing funds and hiding the true financial condition of the company. The ruling is a significant blow to the defendants, and they may face legal consequences for their actions.
In a statement, BYJU’S said that it was “disappointed” with the court’s ruling and would appeal the decision. The company said that it was committed to transparency and accountability, and would continue to work with its lenders to resolve the matter.
The news has sent shockwaves through the ed-tech industry, with many questioning the integrity of BYJU’S and its leadership. The company has been a dominant player in the Indian education market, but its reputation has been tarnished by these allegations.
In conclusion, the US bankruptcy court’s ruling is a significant blow to BYJU’S and its leadership. The court’s verdict is a major victory for BYJU’S Alpha’s lenders, who had accused the defendants of misusing funds and hiding the true financial condition of the company. The ruling is a significant embarrassment for BYJU’S and its leadership, and they may face legal consequences for their actions.
