On April 15, Senator Chuck Grassley (R-IA) sent a letter to Meta Chairman and CEO Mark Zuckerberg demanding answers about whistleblower allegations that the company uses restrictive severance and nondisclosure agreements to silence whistleblowers.
Grassley’s letter comes in response to allegation made by whistleblower Sarah Wynn-Williams, former Director of Global Public Policy at Facebook, now Meta, who testified at a Senate Judiciary Committee Subcommittee on Crime and Counterterrorism hearing that she saw Meta “repeatedly undermine US national security and betray American values… to win favor with Beijing and build an $18 billion dollar business in China.”
“Ms. Wynn-Williams has specifically alleged that her severance agreement violated SEC regulation 17 C.F.R. § 240 21F-17 by restricting her from claiming any monetary reward for reporting illegal conduct to the SEC,” writes Senator Grassley.
“The tactics used by Meta are clearly aimed at silencing Ms. Wynn-Williams, a brave whistleblower who courageously testified in the face of Meta’s threats at the Senate Judiciary Committee’s Subcommittee on Crime and Counterterrorism on April 9, 2025,” Senator Grassley continues. “It’s crucial that Meta ensures its employees can provide protected disclosures without illegal restrictions and bullying.”
SEC Rule 21-F17(a) prohibits entities from “tak[ing] any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation, including enforcing, or threatening to enforce, a confidentiality agreement.”
In recent years, the SEC has penalized a number of companies for using agreements which restrict whistleblowing, including agreements which forced employees to waive their rights to an SEC whistleblower award.
Last year, Grassley pressed OpenAI about its use of restrictive NDAs after whistleblower alleged the company was muzzling whistleblowers.
“Time and time again, employees of Big Tech giants have come forward alleging that their companies are muzzling whistleblowers through restrictive NDAs,” says Kohn, Kohn & Colapinto founding partner Stephen M. Kohn, who represents the OpenAI whistleblowers. “The use of these agreements to stifle whistleblowing is explicitly prohibited by the SEC and fosters a culture of silence that whistleblower laws are designed to prevent. Senator Grassley is once again standing up for all whistleblowers in pressing Meta on this issue and the SEC should take these allegations seriously.”
Further Reading:
Grassley to Zuckerberg: Stop the Secrecy, End the War on Whistleblowers