SEC Cracks Down On Agreement Requiring In-House Reporting of Fraud Complaint

The Securities and Exchange Commission (SEC) announced today that it had made good on its prior promises to take a hard look at employment agreements and policies that could be viewed as attempting to keep securities fraud complaintsin-house. In KBR, Inc., Exchange Act Release No. 74619 (April 1, 2015), the agency announced an enforcement action andsettlement with KBR in which KBR agreed to amend its Confidentiality Statement to provide further disclosures to employeesregarding their right to communicate directly with government agencies, notify KBR employees who had signed theStatement in the past, and pay a $130,000 civil penalty.

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