U.S. securities regulators filed charges on Tuesday against a California-based company for preventing outgoing employees from reaping the benefits of government whistleblower awards.
The Securities and Exchange Commission said Health Net Inc will pay $340,000 to settle charges that it violated whistleblower rules by requiring employees to sign severance agreements in which they waived their rights to government bounties.
The case comes less than a week after the SEC filed similar charges against Atlanta-based building products maker BlueLinx. Both companies settled with the SEC without admitting or denying the charges.
(Reporting by Sarah N. Lynch; Editing by David Gregorio)