US education nonprofit Code.org has filed a lawsuit in California District Court, alleging that WhiteHat Jr, a subsidiary of Byju, violated its licensing agreement by continuing to use Code.org’s platform without paying fees.
WhiteHat Jr, which was sold to Byju’s in 2020 for $300 million, partnered with Code.org last year, agreeing to pay $4 million over four years to license Code.org’s coding education platform. However, in a lawsuit filed earlier this month, Code.org alleges that WhiteHat Jr. failed to adhere to its payment schedule while continuing to utilize its coding courseware.
According to the Code.org complaint, WhiteHat Jr paid the 2022 license fee, but notified the nonprofit earlier this year that it would not be able to make the remaining payments scheduled in the four-year contract. Code.org claims that WhiteHat Jr requested that his original contract be amended to backload unpaid license fee obligations. But Code.org’s lawyers argue that the original contract makes clear that termination does not relieve WhiteHat Jr. of its obligation to pay all future license fees. There is.
“To date, White Hat has not paid either its Q1 2023 invoice or its Q2 2023 invoice. In fact, despite repeated written and verbal requests for payment by Code.org, , WhiteHat has not made any payments in excess of the $1 million it paid pursuant to the 2022 invoice before the agreement was amended,” Code.org’s lawyers claim.
Byju’s did not respond to a request for comment.
The lawsuit is the latest trouble for Byju stemming from its acquisition of WhiteHat Jr, and adds to existing problems the company has faced since the acquisition. The Indian edtech giant, which was valued at $22 billion in a funding round in early 2022, was considering whether to wind down WhiteHat Jr earlier this year, TechCrunch reported.
This also makes Byju’s predicament even worse. Byju’s is facing a difficult situation due to prolonged delays in financial reporting and governance issues. Byju’s leading backer, Prosus, recently reduced the startup’s valuation to less than his $3 billion.
Source: techcrunch.com
