Earlier this month, the U.S. Securities and Exchange Commission (SEC or Commission) announced settlements with Monolith Resources LLC, a privately-held energy and technology company, and CBRE Inc., a commercial real estate services and investment firm, for using employee separation agreements that violated the SEC's whistleblower protection rules. These enforcement actions result from an apparent ongoing SEC sweep of potential violations of Rule 21F-17 under the Securities Exchange Act of 1934. The Rule, which became effective in 2011, prohibits anyone from taking steps "to impede an individual from communicating directly with the Commission staff about a possible securities law violation, including enforcing, or threatening to enforce, a confidentiality agreement."
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The SEC found that Monolith used separation agreements that required certain departing employees to waive their rights to monetary whistleblower awards in connection with filing claims with or participating in investigations by government agencies. The separation agreements had a carve-out for voluntary reporting to the government, stating that: "nothing in this agreement is intended to limit in any way your right or ability to file a charge or claim with any federal, state,...
The lawsuit alleges the CCRB’s online database, 50-a.org, unfairly harms officers by listing serious accusations including sexual misconduct, racial profiling and making false official statements ...