The SEC’s Whistleblower Program: A Growing Legal Cottage Industry

There is big money flowing through the whistleblower program at the Securities and Exchange Commission (SEC), and the stakes are creating a significant increase in litigation.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 created the Securities Whistleblower Incentives and Protection Program under section 21F. Section 21F directs the SEC to make monetary awards to eligible individuals who voluntarily provide original information that leads to successful SEC enforcement actions resulting in monetary sanctions over $1 million and successful related actions. Over the past seven years, the program trend shows continued growth and an emerging cottage industry in the legal arena.