Dodd-Frank Financial Reform

May 9, 2011

Now that Dodd-Frank is a face of life for US businesses, no provision of that law is currently receiving more attention (understandably so) than its expanded incentives for whistleblowers in securities, accounting fraud, and bribery allegations.  It's not the first time a relatively obscure provision of hotly debated legislation turns out to be the most impactful after passage.  Under Dodd-Frank, the previously modest sums awarded by the Securities and Exchange Commission to whistleblowers have ballooned, such that employees who directly contact the SEC can get 10% to 30% of penalties that exceed $1 million.

Michael Grundei, Partner, Wiggin and Dana