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John Fullerton Quoted in “SEC Settles Over Old Confidentiality Agreement”

John F. Fullerton III, a Member of the Firm in the Labor and Employment practice, in the firm’s New York office, was quoted in the Society for Human Resource Management, in "SEC Settles over Old Confidentiality Agreement," by Allen Smith. (Read the full version — subscription required.)

Following is an excerpt:

Old confidentiality agreements may run afoul of a Securities and Exchange Commission (SEC) rule prohibiting companies from deterring whistle-blowers from reporting securities violations to the commission, according to John Fullerton, an attorney with Epstein, Becker & Green in New York City, discussing an April 1, 2015, SEC settlement. …

The statement was on an old form that predated the SEC rule, which took effect in 2011, Fullerton remarked, cautioning that HR should review old confidentiality forms to see if they contain similar language. …

When attorneys are involved in investigations, employees can be required to keep confidential anything they learn during the investigation under the attorney-client privilege, but they are free to share with the SEC things they know firsthand, Fullerton noted.