D. E. Shaw fined $10M for impeding potential whistleblowers

New York-based investment adviser D. E. Shaw & Co. will pay a $10 million penalty to settle charges brought by the Securities and Exchange Commission (SEC) that the company raised impediments to whistleblowing by employees.

From at least 2011 through 2019, the firm required new employees to sign agreements prohibiting the disclosure of confidential corporate information to third parties unless authorized, without an exception for potential SEC whistleblowers, the agency said in a press release Friday.

Further, from at least 2011 through 2023, the firm required departing employees to sign releases affirming they had not filed any complaints with any government agency in order for them to receive deferred compensation and/or other benefits.