US SEC hits 7 public companies with penalties for violating whistleblower protections (updated)

IDEX

09/09/2024 15:54

(Updates with response from TransUnion)
       NEW YORK, Sept 9 (Reuters) - Seven public companies
agreed to pay a combined $3 million to settle U.S. Securities
and Exchange Commission charges they violated whistleblower
protections, the regulator said on Monday.
    TransUnion agreed to pay $312,000 and Acadia Healthcare
Company will pay $1.39 million in connection with the
settlements the SEC disclosed on Monday. 
    The firms were each charged in connection with employment,
separation or other agreements that violated a rule that
prohibits any actions to impede individuals communicating with
the regulator directly about possible violations of securities
laws, the SEC said in its statement. 
    They have all worked toward remediation, including changing
the agreements at issue, the SEC said.
    A spokesperson for TransUnion said the firm cooperated with
the SEC's inquiry and is voluntarily making changes to ensure
employees understand their rights and responsibilities.
    The other penalties were as follows:
    * a.k.a. Brands Holding Corp. agreed to pay a $399,750 civil
penalty
    * AppFolio Inc. agreed to pay a $692,250 civil penalty
    * IDEX Corporation agreed to pay a $75,000 civil penalty
    * LSB Industries agreed to pay a $156,000 civil penalty
    * Smart for Life Inc. agreed to pay a $19,500 civil penalty

    

    

 (Reporting by Chris Prentice)
 ((christine.prentice@thomsonreuters.com; +1 (202) 843-6464;))