SEC Takes Action On Confidentiality Agreements
April 1, 2015
On April 1, 2015, the SEC commenced an enforcement action against a company for using restrictive language in its confidentiality agreements that could potentially stifle the whistleblowing process. The SEC instituted the action based solely on the language of the confidentiality agreements and without regard to whether the company took any affirmative steps to prevent any employee from speaking to the Commission staff. In light of this recent case, companies should take care to review confidentiality statements presented to employees in order to ensure that they do not, directly or indirectly, silence potential whistleblowers. Click below to view the full article contributed by Jason Canales and Megan H. Daneshrad..