Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
Virginia-based technology company NeuStar Inc. agreed Dec. 19 to pay $180,000 to resolve Securities and Exchange Commission allegations its severance agreements violated whistle-blower protection rules ( In re NeuStar, Inc. , S.E.C., No. Admin. Proc. File No. 3-17736, 12/19/16 ).
The company, without admitting or denying wrongdoing, voluntarily revised the agreements immediately after the SEC began its investigation, the agency said. As part of its settlement, Neustar agreed to contact former employees to tell them they aren’t prohibited from accepting SEC whistle-blower awards.
1934 Securities Exchange Act Rule 21F-17, enacted in August 2011, specifically prohibits confidentiality agreements designed to prevent an individual from communicating with the commission about potential securities violations.
According to the SEC, NeuStar’s agreements included broad language forbidding former employees from communicating with the SEC and other regulators regarding company misconduct. Former employees could be compelled to forfeit all but $100 of their severance pay for breaching the clause, the agency said. Since at least 2011, approximately 246 NeuStar employees signed the agreement.
In August, Atlanta-based building products distributor BlueLinx Holdings Inc. was slammed with a $265,000 penalty by the industry watchdog for similar alleged violations.
NeuStar was represented by Barry Goldsmith of Gibson, Dunn & Crutcher LLP, New York.
To contact the reporter on this story: Antoinette Gartrell in Washington at email@example.com
To contact the editor responsible for this story: Phyllis Diamond at PDiamond@bna.com
To view the settlement, visit: https://www.sec.gov/litigation/admin/2016/34-79593.pdf
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)