SEC fines seven cos more than $3M in total for violations of whistleblower protection rule
To settle the SEC’s charges, the companies agreed to pay more than $3 million combined in civil penalties.
The Securities and Exchange Commission (SEC) today announced settled charges against seven public companies for using employment, separation, and other agreements that violated rules prohibiting actions to impede whistleblowers from reporting potential misconduct to the SEC.
To settle the SEC’s charges, the companies agreed to pay more than $3 million combined in civil penalties.
- Acadia Healthcare Company, Inc., agreed to pay a $1,386,000 civil penalty;
- a.k.a. Brands Holding Corp. agreed to pay a $399,750 civil penalty;
- AppFolio, Inc., agreed to pay a $692,250 civil penalty;
- IDEX Corporation agreed to pay a $75,000 civil penalty;
- LSB Industries agreed to pay a $156,000 civil penalty;
- Smart for Life, Inc. agreed to pay a $19,500 civil penalty; and
- TransUnion agreed to pay a $312,000 civil penalty.
The firms were each charged with violating whistleblower protection Rule 21F-17(a), which prohibits any action to impede an individual from communicating directly with the SEC staff about a possible securities law violation.
Each of the firms has agreed not to violate this rule in the future and has taken steps to remediate the violations, including making changes to the relevant agreements.
Maria Nikolova
Maria has been engaged in journalism for more than 17 years, providing Forex industry coverage for the past 10 years. Before joining FNG she was Managing Editor at FinanceFeeds. Prior to that, she worked at LeapRate. Maria has a Philosophy degree from the St. Kliment Ochridski university in Sofia. She has specialized in Cognitive Science in Vienna. Her interests include psychology, AI, and linguistics.Related Posts
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