Edtech giant BYJU’S, already facing a series of challenges, is now confronted with a lawsuit from Code.org, a non-profit organization in the United States. The legal action has been initiated against BYJU’S subsidiary WhiteHat Jr in the California district court, accusing the coding education platform of breaching a licensing agreement by not paying the agreed-upon fees.
Unraveling the Legal Dispute
The lawsuit centers around a partnership forged between WhiteHat Jr and Code.org in 2022. The collaboration involved WhiteHat Jr committing to pay $4 million over four years to license Code.org’s coding education platform. However, Code.org claims that WhiteHat Jr failed to adhere to the payment schedule outlined in the agreement while continuing to use the coding courseware.
History of Partnership and Acquisition
WhiteHat Jr had entered into this partnership with Code.org before BYJU’S acquired the coding platform for $300 million in 2020. The legal dispute comes at a challenging time for BYJU’S, which is already grappling with various issues, including financial constraints, legal battles, and leadership departures.
Code.org’s Allegations and Seeking Resolution
Code.org alleges that WhiteHat Jr paid the fee for 2022 but informed them this year that it couldn’t make the remaining payments. The lawsuit claims that WhiteHat Jr requested an amendment to rearrange the outstanding license fee payments, a request that Code.org contends goes against the explicit terms of the initial contract.
BYJU’S Response and Ongoing Challenges
As of now, BYJU’S has not responded to the legal action. This development adds to the array of challenges BYJU’S is currently facing, including financial disputes, cash burn concerns, layoffs, leadership changes, and regulatory scrutiny.
