In February, a former employee sued Halliburton Co. and its former subsidiary, Kellogg Brown & Root (KBR) for violating the federal False Claims Act and other regulations that shield whistleblowers. The resulting case has now been taken up by the Securities and Exchange Commission which has opened an investigation into the groups.
The lawsuit centers around claims that KBR requires employees seeking to report fraud sign confidentiality agreements which prevented them from discussing their claims with prosecutors and investigators, according to The Washington Post. Those involved on the plaintiff side say that collecting confidentially statements from employees has been a routine operation of KBR’s for some time. The investigation will evaluate how extensively KBR has used those statements to cover up fraud allegations.