The SEC has begun to bring enforcement actions against companies whose employment and client agreements could appear to infringe on the right to report cases in violation of Section 21f-17(a) of the Exchange Act. On September 9, 2024, the Securities and Exchange Commission (SEC) announced that it settled charges against seven public companies for more than $3 million in combined civil penalties for including language in their employment, consulting and other agreements that potentially discourages whistleblowers from reporting issues to outside authorities.… Continue Reading
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SEC Increases Scrutiny of Whistleblower Protections
Posted in Whistleblower
The Securities and Exchange Commission (SEC) has recently announced settlements with a number of companies whose separation agreements or internal policies the SEC viewed as impeding employees’ participation in the SEC’s whistleblower program, including privately-held companies not otherwise regulated by the SEC.
The Upshot
- The SEC’s whistleblower program gives broad protections to individuals seeking to report potential violations of the securities laws, and has been aggressively enforced since its adoption in 2011.