Code.org files lawsuit against BYJU’S unit WhiteHat Jr alleging breach of contract
Code.org has alleged that WhiteHat Jr violated a licensing contract by not paying fees while continuing to utilise the former’s platform.
Code.org, a non-profit organisation in the US focused on education, has filed a lawsuit in the US District Court for the Northern District of California, alleging thatunit, , has breached a licensing contract.
Code.org has alleged that WhiteHat Jr violated a licensing contract by not paying fees while continuing to utilise the former’s platform, according to TechCrunch, which was the first to report on the development,
The non-profit announced in May 2021 that it had entered into a licensing agreement with WhiteHat Jr, permitting the integration of its content and tools into the latter’s online tutoring service.
WhiteHat Jr had agreed to pay $4 million over four years to license Code.org’s coding education platform, the report said. However, in the lawsuit filed on December 1, 2023, Code.org alleged that WhiteHat Jr did not adhere to the payment schedule while continuing to utilise its coding courseware.
YourStory has reached out to BYJU’S for comments.
The development comes at a time when BYJU’S is ridden with challenges, including the litigation surrounding the $1.2-billion term loan B, notice from the ED, troubles with the BCCI, and a liquidity crunch.
As a measure to manage expenses and tackle liquidity challenges, the Bengaluru-based edtech firm is said to be rebranding WhiteHat Jr, which it acquired for $300 million in 2020. Recently, it has emerged as one of its most financially draining subsidiaries.
In August, WhiteHat Jr Chief Executive Officer Ananya Tripathi decided to move on from the BYJU’S-owned company. Besides, the company has seen other high-level departures in the following months, as part of a business restructuring exercise that involves streamlining the workforce.
Edited by Suman Singh