SEC charges seven firms for violations of Whistleblower Protection Rule

Companies required to drop employment contract clauses impeding whistleblower activity.

The SEC has reached settlements with seven companies, totaling more than $3m, for violating rules designed to protect whistleblowers.

Whistleblowers were impeded from reporting potential securities law violations by the companies requiring employees to waive their right to possible monetary rewards, breaking the Whistleblower Protection Rule, SEC Rule 21F-17(a).

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