US SEC hits 7 public companies with penalties for whistleblower protection violations

Seven public companies have agreed to pay a combined $3 million to settle U.S. Securities and Exchange Commission charges that they violated whistleblower protections, the regulator said Monday.

TransUnion agreed to pay $312,000 and Acadia Healthcare Company will pay $1.39 million in connection with the settlements disclosed Monday by the SEC.

Each firm was charged in connection with employment, separation or other agreements that violated a rule that prohibits any actions that prevent individuals from communicating directly with regulators about possible violations of securities laws, the SEC said in its statement.

All worked toward remediation, including amending the agreements in question, the SEC said.

TransUnion said in a statement that the firm has cooperated with the SEC’s investigation and is voluntarily making changes to ensure employees understand their rights and responsibilities.

“The SEC’s engagement in this matter reflects what good regulatory oversight can look like,” it said.

Representatives for the other companies did not immediately respond to requests for comment.

The other sanctions were as follows:

• ka Brands Holding Corp agreed to pay a civil penalty of $399,750
• AppFolio Inc. agreed to pay a civil penalty of $692,250
• IDEX Corp agreed to pay a civil penalty of $75,000
• LSB Industries agreed to pay a civil penalty of $156,000
• Smart for Life Inc agreed to pay a civil penalty of $19,500

(Reporting by Prentice; Editing by Chizu Nomiyama and Tomasz Janowski)