September 29, 2023

Registered investment adviser D. E. Shaw & Co. L.P. has agreed to pay $10 million to settle charges of violating the whistleblower protection rule of the Securities Exchange Act of 1934.  According to the SEC, between 2011 and 2019, the company required new employees to sign agreements prohibiting them from disclosing information to anyone outside the company without company authorization, a court order, or as required by law.  Between 2011 and 2023, the company also required about 400 departing employees to sign releases stating they had not filed complaints with any federal agency before they were able to receive benefits.  SEC

Tagged in: Importance of Whistleblowers, SEC Whistleblower Reward Program,