By Michael Specter
In a striking testimony before US Bankruptcy Judge John T. Dorsey, Nebraska businessman William R. Hailer accused Byju Raveendran, the founder of Byju’s, of attempting to persuade him to leave the United States and avoid testifying in a federal court case. Hailer alleged that Raveendran offered him a high-paying job and provided a $10,700 plane ticket to Dubai just two days prior to his scheduled court appearance.
Job Offer and Plane Ticket
Hailer testified that Raveendran not only urged him to relocate but also reiterated an annual salary offer of $500,000, promising that the role would commence immediately upon his departure. “He encouraged me not to testify,” Hailer stated, according to reports. “He said I should come to Dubai, and the salary would start on day one.”
Legal Context of the Allegations
The allegations arise amidst ongoing legal battles faced by Byju’s, which is currently navigating complex proceedings in both US and Indian courts. The case centers on Raveendran’s attempts to regain control of Byju’s international operations, particularly Epic!, a US-based education software company currently overseen by a court-appointed trustee.
Hailer indicated that Raveendran’s strategy included a failed plan to repurchase $1.2 billion in outstanding debt owed to US creditors in exchange for equity in Epic!. Judge Dorsey remarked that the claims made by Hailer warranted a referral to federal prosecutors for further investigation.
Previous Incidents and Current Challenges
This isn’t the first instance of alleged obstruction of justice related to Byju’s; earlier this year, another associate reportedly fled the US to avoid testifying in the same case, which resulted in a contempt of court ruling.
Hailer’s testimony also underscores the significant challenges facing Byju’s, as the company grapples with multiple legal issues in both jurisdictions. Indian authorities are working to address the creditors’ claims, who allege that Raveendran concealed $533 million in loan proceeds intended for debt repayment. Creditors have pursued legal action in US courts for over a year, complicating the company’s financial recovery.
In his court statements, Hailer described himself as a “pawn in Byju’s manipulation of the law,” asserting that his testimony supports the trustee’s plan to sell Epic! to facilitate debt settlement.
As of now, neither Byju’s nor Raveendran’s representatives have publicly commented on the allegations. Raveendran has previously denied any wrongdoing, claiming that his actions were necessary to counter aggressive tactics employed by distressed company creditors.
