SEC Charges Monolith Resources LLC for Violating Whistleblower Protection Rules

SEC Charges Monolith Resources LLC for Violating Whistleblower Protection Rules

The Securities and Exchange Commission announced that Monolith Resources LLC, a privately held energy and technology company from Lincoln, Nebraska, has been charged for using employee separation agreements which violated the SEC's whistleblower protection rules. According to the SEC’s order, Monolith was using these separation agreements between February of 2020 and March 2023, which required departing employees to waive their rights to monetary awards if they filed claims with or participated in investigations by government agencies. The SEC found this action to be a violation of Rule 21F-17 under the Securities Exchange Act of 1934 and Monolith has since agreed to cease and desist the unlawful practice, as well as pay a penalty of $225,000. Monolith also agreed to reach out to former employees who had signed the improper agreements, and make them aware that the agreements do not limit their ability to gain financial awards for providing information to government agencies.