SEC Enforcement Action Puts Publicly-Traded Contractors’ Internal Investigation Policies in the Crosshairs

Recently, KBR, Inc., agreed to pay a civil money penalty of $130,000 to settle allegations by the Securities and Exchange Commission that confidentiality statements KBR required its employees to sign in the course of internal investigations might impede whistleblower reports to the government. The authors of this article discuss the outcome, which may be unsettling for government contractors, particularly those that are publicly traded.