Whistleblower protection

Atlanta-based building products distributor BlueLinx Inc. is settling charges that it violated an important whistleblower protection rule by using severance agreements that required departing employees to waive their rights to monetary recovery should they file a charge or complaint with the Securities and Exchange Commission (the “SEC”) or other federal agencies.

BlueLinx has agreed to pay a $265,000 penalty per the SEC’s order.

According to the SEC’s order, BlueLinx’s restrictive provisions were an attempt to bar employees from filing charges against the company and to keep their mouths shut if the company ever committed any securities law violations. The restrictive language in the agreements essentially forced employees leaving the company to waive possible whistleblower awards or risk losing their severance payments and other post-employment benefits.

save-the-qeen-1244290 The Securities and Exchange Commission (“SEC”) has taken the side of the whistleblower in a dispute against mutual fund giant Vanguard Group.

The SEC filed a brief on March 28, 2016 in support of David Danon, a former lawyer at the Pennsylvania-based money manager who said Vanguard terminated him because he raised concerns about some of the firm’s tax practices. Danon filed a wrongful termination lawsuit against Vanguard in late 2015.

The Dodd-Frank Act entices “whistleblowers” to come forth and help the SEC identify possible fraud and other violations much earlier than might have been possible, consequently reducing harm to investors, preserving the integrity of U.S. capital markets, and swiftly holding perpetrators of unlawful conduct accountable, according to the SEC Office of the Whistleblower website.

Articles Posted in Whistleblower protection

Atlanta-based Company Paying Penalty for Violating Important SEC Whistleblower Protection Rule

SEC Whistleblower Program Affords Protection to Vanguard Lawyer Who raised Concerns About the Company