A coalition of whistleblower advocates has petitioned the Securities and Exchange Commission, urging it to do more to prevent retaliation against those who report malfeasance at public companies.
The effort, intended to coincide with the fourth anniversary of the Dodd-Frank Act, is spearheaded by the law firm Labaton Sucharow, the Government Accountability Project, a whistleblower protection an advocacy organization, and 250 other organizations. Two petitions call upon the SEC to “clarify and strengthen certain aspects of the agency’s Whistleblower Program.”The first petition, rulemaking proposed by Labaton Sucharow and GAP, addresses “unscrupulous legal maneuvers” companies use when trying to silence potential whistleblowers. Examples include: preventing employees from consulting independent legal counsel, requiring notice of external reporting, demanding waivers of any future whistleblower awards, and threatening lawsuits to enforce secrecy agreements.
