The U.S. Securities and Exchange Commission has filed a number of actions alleging retaliation against whistleblowers. Most recently, BlueLinx, an Atlanta-based building products distributor, agreed to pay a penalty and settle charges that it violated the SEC's whistleblower anti-retaliation rules in its use of severance agreements to force employees to waive their rights to monetary recovery should they file a charge or complaint with the SEC or other federal agencies. The SEC is interested in bringing more cases against companies it perceives as having just such a "chilling effect" on potential whistleblowers. How your company responds to whistleblower complaints speaks volumes to the SEC and other government regulators and affects your reputation in other, often unrelated areas of conduct. Fenwick securities enforcement co-chair Mike Dicke discusses the elements of a strong whistleblower program and how your company can show it is a good corporate citizen.
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