Are Lawyers Just Blaming the Client to Quit the US Bankruptcy Case?

US Lawyers Seek to Withdraw from Defending Byju’s Units Amid Bankruptcy Dispute

US lawyers representing units of the troubled Indian tech firm Byju’s are seeking to withdraw from defending their clients in an ongoing bankruptcy dispute. They cite “an irreparable breakdown” in communication with the companies and a board member accused of lying in court to conceal $533 million from unhappy lenders.

In a rare move, two law firms representing Riju Ravindran, brother of Byju’s founder, filed papers on Friday in federal court in Wilmington, Delaware. They claim their clients have not cooperated in their own defense. Lawyers representing Byju’s ally, William C. Morton, founder of a small Florida hedge fund, have also requested court permission to withdraw.

Representatives for Byju’s and Morton did not immediately respond to requests for comment.

For months, lenders have been searching for $533 million in cash that Ravindran allegedly moved out of the US, according to court documents. US Bankruptcy Judge John Dorsey found Ravindran in contempt of court for refusing to assist in locating the funds.

The missing money is central to a dispute between lenders owed $1.2 billion and the startup founded by entrepreneur Byju Raveendran. The ed-tech company’s official name is Think & Learn Pvt.

The disputed cash belongs to a bankrupt shell company, Byju’s Alpha Inc., affiliated with Think & Learn, which was taken over by the lenders after their loan defaulted.