A settlement has been reached in Whistleblower case with SandRidge Energy.
The allegations arose from a lawsuit that claimed SandRidge Energy fired an employee who raised concerns inside the company about how it calculated its publicly reported oil-and-gas reserves.
According to the U.S. Securities and Exchange Commission (SEC), SandRidge Energy also allegedly used separation agreements that prohibited outgoing employees from participating in government investigations or disclosing potentially harmful company information.
SandRidge Energy wrongfully terminated the whistleblower after management concluded the employee was disruptive and could be replaced with someone “who could do the work without creating all the internal strife.” Few months prior to the employee getting fired, the employee was offered a promotion in which it was turned down.
“Whistleblowers who step forward and raise concerns internally to their companies about potential securities law violations should be protected from retaliation regardless of whether they have filed a complaint with the SEC. This is the first time a company is being charged for retaliating against an internal whistleblower, and the second enforcement action this week against a company for impeding employees from communicating with the SEC.” stated Jane Norberg, Chief of the SEC’s Office of the Whistleblower.
SandRidge Energy settled without admitting or denying the SEC’s findings.
