The latest cases in a recent string of settled orders by the Securities and Exchange Commission again highlight the agency's resolve to prevent corporate actions that could chill reporting of possible legal violations. One case involved retaliation against an employee for reporting concerns about his employer's accounting methodology, was the SEC's first based solely on retaliation. In another order, the SEC sanctioned an issuer who included a liquidated damages clause in a severance agreement and thereby "chilled" communications with the SEC. See WilmerHale's client alert.
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