Code.org, a US-based educational non-profit, has taken legal action against Byju’s subsidiary WhiteHat Jr in a California district court. The lawsuit alleges that WhiteHat Jr violated a licensing agreement by not fulfilling payment obligations while continuing to use Code.org’s coding education platform.
WhiteHat Jr, acquired by Byju’s for $300 million in 2020, had entered into a partnership with Code.org last year, committing to pay $4 million over four years for the licensing of Code.org’s coding education platform. However, according to the lawsuit filed this month, Code.org argues that WhiteHat Jr failed to adhere to the agreed-upon payment schedule while still accessing its coding course.
In its legal complaint, Code.org claims that while WhiteHat Jr made the 2022 licensing fee payment, it subsequently informed the non-profit earlier this year about its inability to fulfil the remaining scheduled payments under the four-year agreement. WhiteHat Jr allegedly sought an amendment to the original agreement, proposing to backload its outstanding licence fee obligations. However, Code.org’s legal team argues that the original contract clearly states that, even in the case of termination, WhiteHat Jr remains obligated to pay all future licensing payments still owed.
Byju’s has not responded to requests for comment on the matter.
This legal dispute adds to the challenges faced by Byju’s following its acquisition of WhiteHat Jr, compounding existing issues since the purchase. The Indian edtech giant, valued at $22 billion in an early 2022 financing round, had reportedly considered winding down WhiteHat Jr earlier this year, as reported by TechCrunch.
