- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-09-09T15:34:00
Seven public companies will pay a total of $3 million in fines for requiring employees to sign agreements containing provisions that impeded their ability to report misconduct to the Securities and Exchange Commission (SEC).
The SEC announced the fines Monday, alleging that the firms used “employment, separation, and other agreements that violated rules prohibiting actions to impede whistleblowers from reporting potential misconduct to the SEC.”
The firms fined were Acadia Healthcare Company will pay nearly $1.4 million, a.k.a. Brands Holding Corp., a fashion retailer, will pay nearly $400,000, AppFolio will pay $692,250, IDEX Corp., a manufacturer, will pay $75,000, LSB Industries, a chemical manufacturer, will pay $156,000, Smart for Life, a wellness retailer, will pay $19,500 and TransUnion, a credit reporting company, will pay $312,000.
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Broker-dealer Nationwide Planning Associates and two affiliated investment advisers impeded potential whistleblowers from reporting misconduct to the Securities and Exchange Commission and have agreed to settle the charges for a combined $240,000.
A subsidiary of JPMorgan Chase will pay an $18 million fine to the Securities and Exchange Commission for allegedly violating the agency’s whistleblower protection rule in hundreds of settlement agreements with clients and customers.
New York-based investment adviser D. E. Shaw & Co. will pay a $10 million penalty to settle charges brought by the Securities and Exchange Commission that the company raised impediments to whistleblowing by employees.
A privately held family company and its CEO, who announced a $10 billion bid to buy U.S. Steel without having the cash on hand, will pay $600,000 in penalties to the Securities and Exchange Commission for making materially false statements.
Clearview AI was fined 30.5 million euro (U.S. $33.8 million) by the Dutch Data Protection Authority (DPA) and ordered to stop collecting images of Dutch citizens in the latest enforcement action against the U.S. company.
Massachusetts-based technology company Circor International settled charges with the Securities and Exchange Commission regarding deficient internal accounting controls without paying a fine.
