Whistleblower Developments is a periodic report covering significant cases, decisions, proposals, and legislation related to whistleblower statutes and how they may impact your business. Recent developments include:

• Court Holds That the SEC’s Whistleblower Rule Bars Inclusion of Standard Confidentiality Language in Settlement Agreements with Investors
• SEC Whistleblower Program Continues Streak of Large Awards, with More Than $72 Million Awarded in the Fourth Quarter of 2021
• SEC Whistleblower Program’s FY 2021 Annual Report Boasts Record-Setting Year

Court Holds That the SEC’s Whistleblower Rule Bars Inclusion of Standard Confidentiality Language in Settlement Agreements with Investors

As noted in our most recent newsletter, in SEC v. Collector’s Coffee Inc., 19-Civ-4355 (S.D.N.Y. July 21, 2021), the United States District Court for the Southern District of New York in July 2021 rejected the defendants’ claim that SEC Rule 21F-17, which prohibits impeding individuals from communicating with the SEC regarding potential securities laws violations by relying on confidentiality agreements, violated the SEC’s rulemaking authority. On November 17, 2021, the court granted the SEC’s motion for summary judgment on the Rule 21F-17 count. The defendants had entered into settlement agreements with investors that provided that the investors would not initiate any communications with any regulatory agency, including the SEC. The defendants enforced these agreements, suing an investor...

Read Full Story: https://www.jdsupra.com/legalnews/a-review-of-recent-whistleblower-1903010/