Bloomberg Reports on KKC Clients Blowing Whistle on Big Tech’s Restrivitice NDAs

On April 18, Bloomberg published a story reporting on whistleblower complaints filed with the Securities and Exchange Commission (SEC) which detail Big Tech companies allegedly forcing workers to sign restrictive non-disclosure agreements. The story, “Tech Firms Try to Muzzle Workers With NDAs, SEC Tipsters Say,” extensively cites whistleblower disclosures filed by Kohn, Kohn & Colapinto (KKC).

“Firms, including an Apple Inc. subcontractor, Electronic Arts Inc. and Block Inc. improperly used non-disclosure agreements that prohibit workers from reporting bad behavior to the SEC, according to tipster complaints viewed by Bloomberg News that were filed with the agency by law firm Kohn, Kohn & Colapinto LLP,” the article states. “The contracts, which ban employees from sharing confidential information with any outsider, don’t include an exception for alerting regulators.”

Under the Dodd-Frank Act, companies are barred from prohibiting employees from reporting potential securities violations to the SEC. In 2015, the SEC took its first enforcement action against a company for language in NDAs which restricted whistleblowing. The action came after KKC, on behalf of whistleblower Harry Barko, filed a complaint with the SEC alleging that Kellogg Brown & Root (KBR) was forcing employees to sign restrictive NDAs as part of the company’s alleged “compliance” program.

The Bloomberg story features quotes from KKC client Thomas Le Bonniec, who blew the whistle on privacy issues related to Apple’s Siri program. Le Bonniec says he initially struggled with making a disclosure due to a restrictive NDA he had signed. “‘It was scary. I thought I may end up broke for the rest of my life,’ said Le Bonniec.”

The article states that “[t]he contracts show a ‘willful disregard’ for the law and SEC rules given the public statements and numerous enforcement actions the agency has brought against such agreements, Kohn, Kohn & Colapinto wrote in a January complaint, which was one of those viewed by Bloomberg.”

Read the full Bloomberg Story: Tech Firms Try to Muzzle Workers With NDAs, SEC Tipsters Say

Learn More about KKC’s Role in Banning Restrictive Non-Disclosure Agreements