SEC Issues Fine Over Anti-Whistleblower Agreements

Law360, New York (August 10, 2016, 4:14 PM EDT) -- The U.S. Securities and Exchange Commission on Wednesday fined an Atlanta building products distributor over employment agreements that the agency said illegally restricted former employees' rights to collect cash for providing whistleblower tips.

BlueLinx Holdings Inc., an Atlanta company that distributes construction products, agreed to pay a $265,000 penalty to end allegations that the severance agreements signed by former employees upon leaving violated securities laws by preventing them from collecting money for filing a complaint or tip with the SEC.

Stephanie Avakian, the deputy director of the SEC's enforcement division, said Wednesday in a statement the agency is committed to ensuring...

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