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SEC Brings First Action on Whistleblower ‘Pre-taliation’

Bruce Carton | April 1, 2015
Today, the SEC announced that it that it has filed its "first enforcement action against a company for using improperly restrictive language in confidentiality agreements with the potential to stifle the whistleblowing process." The SEC filed today's settled administrative proceeding against KBR Inc., a technology and engineering firm.
The SEC has warned for some time now that it views companies' attempts to potentially intimidate employees from coming forward as whistleblowers through confidentiality agreements as a form of retaliation -- or “pre-taliation," as the SEC's Sean McKessy has dubbed it. McKessy, Chief of the SEC's Office of the Whistleblower, stated last year...
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