Diligence Sues CEO for Alleged Self-Dealing, Misappropriation

Diligence Inc. hit its own president and CEO with a lawsuit in Delaware Chancery court for allegedly breaching his fiduciary duties through self-dealing, misappropriating corporate resources, and obstructing the board’s investigation into his conduct.

Diligence, which provides investigatory and due diligence services to businesses, said Tuesday its board expressed concerns in 2019 about “a lack of information” provided by Nicholas Day regarding suspicious activity that was flagged. The CEO spearheaded Diligence’s Geneva operation and “preposterously declared himself the sole beneficial owner” of the Swiss subsidiary, according to the complaint.

Day is further accused of designating himself as the “holder” ...