Dye & Durham DND-T has been hit by a mass boardroom defection, as three of its seven directors – including chairman Arnaud Ajdler, the hedge fund manager who led a successful activist campaign to overhaul the company’s governance last year – are stepping down from the embattled legal software firm.

Mr. Ajdler, founder of New York’s Engine Capital L.P., swept in an entirely new board last year with five other nominees that he’d recruited, plus a seventh appointed by ex-chairman Tyler Proud under a shareholder rights agreement.

Clock ticking on potential Dye & Durham default after continued filing delays

Mr. Proud’s nominee, Eric Shahinian, is also stepping down, as is Sid Singh, one of Mr. Ajdler’s hand-picked nominees who briefly served as CEO during the company’s tumultuous year unde

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