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The SEC Expands Enforcement Program Based Upon Standard Corporate Separation Agreements

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The contents alone of commonly used, form Separation Agreements, Confidentiality Agreements, and other standard corporate documents can result in significant fines and other penalties imposed by the Securities Exchange Commission (SEC) and other federal enforcement agencies. These agencies take the position that standard release and nondisclosure language commonly found in such documents has the potential effect of deterring whistleblower activity. Last week, New York financial services firm BlackRock agreed to pay a $340,000 civil penalty and issue government approved notices to over 1,000 former employees.  Read more here.