US Court Rules Byju's Officials Committed $533 Million Fraud

A US bankruptcy court has ruled that Byju’s and its key directors, including Riju Ravindran, were involved in fraudulent activities involving the concealment of $533 million from lenders. The Delaware Bankruptcy Court confirmed that multiple fund transfers from Byju’s Alpha, a subsidiary of the edtech firm, constituted actual fraud and breaches of fiduciary duty. Lenders represented by Glas Trust expressed satisfaction with the court's acknowledgment of a deliberate fraud scheme, indicating this ruling is a significant step toward recovering the misappropriated funds. The court found that the defendants actively obscured financial transactions, failed to provide necessary financial disclosures, and misled creditors about the status of the funds. Following Byju’s default on a $1.2 billion loan in early 2022, the funds were allegedly funneled to Camshaft Capital Fund, a hedge fund linked to the defendants. The court's ruling is a crucial development in the ongoing legal battles faced by Byju’s, as they navigate significant financial difficulties.