SEC settles with 7 companies it says violated whistleblower protection rules
Seven companies settled with the Securities and Exchange Commission over charges that they violated rules protecting whistleblowers who report potential misconduct to the regulatory agency
Seven companies settled with the Securities and Exchange Commission over charges that they violated rules protecting whistleblowers who report potential misconduct.
The combined civil penalties for the seven companies totaled more than $3 million, the SEC said Monday.
Among other actions, the companies required employees to waive their right to potential whistleblower monetary awards, according to the SEC.
“This severely impedes would-be whistleblowers from reporting potential securities law violations to the SEC,” said Jason Burt, director of the SEC's Denver office.
The companies and the civil penalties they agreed to settle include Acadia Healthcare Company, Inc., $1,386,000; a.k.a. Brands Holding Corp., $399,750; AppFolio, Inc., $692,250; IDEX Corp., $75,000; LSB Industries, $156,000; Smart for Life, Inc. $19,500 and TransUnion, $312,000.
“Ensuring that potential whistleblowers can communicate directly with the Commission is a critical part of the SEC’s oversight mandate,” said Creola Kelly, chief of the SEC’s Office of the Whistleblower.
TransUnion said that it is already incorporating changes to better protect employees.
“This settlement reflects the seriousness with which we take our commitment to regulatory compliance,” TransUnion said in an email to The Associated Press. “We voluntarily assisted with the SEC’s work and are likewise making voluntary changes to ensure employees and contractors better understand their rights and responsibilities, as set forward in the agreement.”
Other companies did not immediately reply to an
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