The CEO of a Silicon Valley startup was fired after spending more than $75,000 (£56,000) at "adult entertainment venues", according to a legal filing.
Turvo boss Eric Gilmore was removed from the company he helped found in May after a financial audit uncovered the expenses.
The spending allegedly took place over a three-year period using company credit cards, with the goal of entertaining prospective customers.
"In May 2019, during a review of expenses charged to company credit cards, Turvo's Chief Financial Officer discovered that Mr Gilmore had used his card to expense at least $125,000 in entertainment charges, including (allegedly) $76,120 paid to adult entertainment venues," the legal filing stated.
The lawsuit was brought about by Mr Gilmore, who claimed the Turvo board of directors did not follow the correct procedure to remove him from his role.
The strip club allegations were provided as background information in the case and were not denied by Mr Gilmore or his legal team.
A spokesperson for Turvo said the firm had no further comment, adding "the matter has been resolved and the company has moved on".
Turvo, which makes software for the shipping industry, has since hired Scott Lang as its new CEO.
In an interview with Bloomberg, who first reported on the revelations, he said he would "never" try to "win over prospective clients at stripper joints".
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