SEC settles with 7 companies it says violated whistleblower protection rules

Seven companies settled with the Securities and Exchange Commission over charges that they violated rules protecting whistleblowers who report potential misconduct.

The combined civil penalties for the seven companies totaled more than $3 million, the SEC said Monday.

Among other actions, the companies required employees to waive their right to potential whistleblower monetary awards, according to the SEC.

“This severely impedes would-be whistleblowers from reporting potential securities law violations to the SEC,” said Jason Burt, director of the SEC's Denver office.