Defendant Name: KBR, Inc.

Defendant Type: Public Company

Document Reference: 2015-54

Document Details

Legal Case Name In the Matter of KBR, Inc.
Document Name SEC: Companies Cannot Stifle Whistleblowers in Confidentiality Agreements
Document Date 01-Apr-2015
Document Format Administrative Proceeding
File Number 3-16466
Allegation Type Other
Document Summary 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.

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
KBR agreed to amend its confidentiality statement to clarify that employees are free to report possible violations to the SEC and other federal agencies without prior authorization or threat of retaliation

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."