Senator Presses Meta on Alleged Use of NDAs to Muzzle Whistleblowers

On April 15, Senator Charles Grassley sent a letter to Meta Chairman and CEO Mark Zuckerberg demanding answers relating to allegations that the tech giant deploys restrictive severance agreements and nondisclosure agreements (NDAs) to muzzle whistleblowers, in violation of SEC Rule 21F-17(a).

“Recently, Ms. Sarah Wynn-Williams approached my office with whistleblower allegations against Meta,” writes Senator Grassley. “Ms. Wynn-Williams has specifically alleged that her severance agreement violated SEC regulation 17 C.F.R. § 240 21F-17 by restricting her from claiming any monetary reward for reporting illegal conduct to the SEC.”

“The tactics used by Meta are clearly aimed at silencing Ms. Wynn-Williams, a brave whistleblower who courageously testified in the face of Meta’s threats at the Senate Judiciary Committee’s Subcommittee on Crime and Counterterrorism on April 9, 2025,” Senator Grassley continues. “It’s crucial that Meta ensures its employees can provide protected disclosures without illegal restrictions and bullying.”

“Time and time again, employees of Big Tech giants have come forward alleging that their companies are muzzling whistleblowers through restrictive NDAs,” says Kohn, Kohn & Colapinto founding partner Stephen M. Kohn. “The use of these agreements to stifle whistleblowing is explicitly prohibited by the SEC and fosters a culture of silence that whistleblower laws are designed to prevent. Senator Grassley is once again standing up for all whistleblowers in pressing Meta on this issue and the SEC should take these allegations seriously.”

Kohn and his colleagues at Kohn, Kohn & Colapinto have played a leading role in banning restrictive NDAs which stifle whistleblowing, having successfully advocated for the SEC rules forbidding restrictive NDAs and having represented the whistleblower whose case resulted in the first action taken against a company for language in NDAs that restricted whistleblowing.

Kohn, Kohn & Colapinto currently represents a number of whistleblowers alleging that Big Tech companies, including Apple and OpenAI, are using NDAs and other agreements to stifle whistleblowing.

In recent years, the SEC has dramatically increased its enforcement of Rule 21F-17(a), announcing a number of enforcement actions centered around violations of the rule, including a record $18 million penalty levied against JP Morgan.

In enforcing Rule 21F-17(a), the SEC has found illegal language in severance or separation agreements, employee contracts, settlement agreements and compliance manuals. Language in the various types of contracts found to violate Rule 21F-17(a) has included requiring the prior consent of the company before disclosing confidential information to regulators, preventing the employee from initiating contact with regulators, requiring the employee to waive their right to awards from whistleblowing award programs, including a “non-disparagement clause” that specifically included the SEC as a party the employee could not “disparage” the company to, and requiring the employee to inform the company soon after reporting information to the SEC.