SEC Brings Enforcement Action For Violation of Its Whistleblower Protection Provision
On August 10, 2016, the Securities and Exchange Commission (“SEC”) instituted and settled cease-and-desist proceedings against BlueLinx Holdings Inc. for allegedly violating Rule 21F-17 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) by incorporating in severance agreements “impediments to participation by its employees in the SEC’s whistleblower program.” This action follows the SEC’s April 2015 settlement with technology and engineering firm KBR, Inc. in connection with confidentiality agreements that the SEC described as “improperly restrictive” under Rule 21F-17.