Katz Banks Kumin Partners Submit Letter to SEC Regarding Employer Attempts to Silence Financial Whistleblowers  Katz Banks Kumin partners David Marshall and Debra Katz submitted a letter to the SEC calling for the SEC to enact regulations to put an end to efforts by corporations to impose contractual limitations on the ability of whistleblowers ability to submit information to the SEC.  Marshall and Katz, who specialize in the representation of whistleblowers, including in the SEC whistleblower program, detailed practices  that they have observed of companies including language in routine severance and settlement agreements that violate the SEC rule preventing companies from impeding individuals from communicating directly with the SEC about possible securities law violations through its whistleblower-reward program. Marshall and Katz wrote in their letter to the SEC that “whether enforceable or not, the inclusion of such terms in severance agreements and settlement agreements resolving employment claims has a chilling effect on individuals who would provide information to the SEC about potential securities violations.”  They concluded their letter by urging the SEC to promulgate a regulation or issue an opinion making clear that these tactics will not be tolerated.  According to Katz, “There is no legitimate justification for allowing companies to impede whistleblowers in this manner.  The SEC must act now.” Further Reading BNA: Whistleblower Representatives Call on SEC To Bar Employer Pacts That Block Reporting May 20, 2013 Wall Street Journal: Companies Trying to Contain Potential Whistleblowers May 14, 2013 Law360: SEC Must Stop The Latest Effort To Impede Whistleblowers May 13, 2013 Law360: Employer Scare Tactics May Chill SEC Whistleblower Program May 10, 2013 David Marshall and Debra Katz Letter to SEC Commissioners May 8, 2013