SEC Brings 1st Whistleblower Action Over Confidentiality Pact
Law360, New York (April 1, 2015, 11:14 AM EDT) -- The U.S. Securities and Exchange Commission on Wednesday brought its first enforcement action against a company for attempting to stifle the whistleblowing process through improperly restrictive language in a confidentiality agreement.
Houston-based global technology and engineering firm KBR Inc. agreed to pay $130,000 to settle the SEC's charges that some of its confidentiality agreements included language warning employees that they could face discipline or be fired if they discussed internal investigations with outside parties without first getting approval from KBR's legal department.
Such practices are illegal under the SEC's Rule 21F-17, enacted under the Dodd-Frank Act of 2010.
"By requiring its...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!