Seven public companies, in industries ranging from healthcare to software, will pay a total of $3m in fines for requiring employees to sign agreements containing provisions that impeded their ability to report misconduct to the SEC. The companies are alleged to have utilized “employment, separation, and other agreements that violated rules prohibiting actions to impede whistleblowers from reporting potential misconduct to the SEC.” The biggest fine, of $1.4m, went to behavioral healthcare services provider Acadia. Monday’s settlements are part of a sweep by the SEC over the past few years into companies’ use of confidentiality provisions and nondisclosure clauses in their various employment contracts.
SEC issues $3m in fines to seven firms over whistleblower violations
56 responses to “SEC issues $3m in fines to seven firms over whistleblower violations”
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