Defendant Name: KBR, Inc.

Defendant Type: Public Company
SIC Code: 1629
CUSIP: 48242W10

Initial Case Details

Legal Case Name In the Matter of KBR, Inc.
First Document Date 01-Apr-2015
Initial Filing Format Administrative Action
File Number 3-16466
Allegation Type Other

Violations Alleged

Other
• Rule 21F-17 Exchange Act

Resolutions

First Resolution Date 01-Apr-2015
Headline Total Penalty and Disgorgement $130,000

Related Documents:

34-74619 01-Apr-2015 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
On April 1, 2015, the SEC instituted settled administrative proceedings against KBR, Inc. According to the SEC: "[T]he language found in [KBR's] form confidentiality statement impedes such communications by prohibiting employees from discussing the substance of their interview [pertaining to possible securities laws violations] without clearance from KBR's law department under penalty of disciplinary action including termination of employment. This language undermines the purpose of Section 21F and Rule 21F-17(a), which is to "encourage[e] individuals to report to the Commission."
2015-54 01-Apr-2015 Press Release--Administrative Proceeding
SEC: Companies Cannot Stifle Whistleblowers in Confidentiality Agreements
On April 1, 2015 the SEC announced that it charged KBR, Inc. "with violating whistleblower protection Rule 21F-17 enacted under the Dodd-Frank Act." This action is the first against a company for using improperly restrictive language in confidentiality agreements with the potential to stifle the whistleblowing process.