SEC Brings First Enforcement Action Targeting Language Contained in Confidentiality Agreements

As we reported in a previous post, "SEC Investigating Companies' Employment Contracts That Restrict Whistleblowing," the U.S. Securities and Exchange Commission has been vocal about its concerns regarding the effects of confidentiality provisions on the agency's enforcement efforts and on the rights of whistleblowers, and has even asked several companies for years of employment contracts, nondisclosure agreements, and other documents formed with their employees. Chief of the SEC Office of the Whistleblower Sean McKessy said that his office would be on the lookout for contracts that have a chilling effect on employees' bringing allegations of wrongdoing to the SEC's attention.



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