What percentage of the proceeds from a litigation settlement can whistleblowers receive under Dodd-Frank?

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, whistleblowers who provide information that leads to successful enforcement actions may receive a reward that typically ranges from 10% to 30% of the monetary sanctions collected in the settlement or judgment. This incentivizes individuals to report violations of securities laws or any rule or regulation thereunder because they stand to gain a significant portion of the financial penalties imposed on wrongdoers. The intention behind this structure is to encourage whistleblowing by providing tangible financial rewards, while also ensuring that the rewards are substantial enough to motivate individuals to come forward with information. This range emphasizes the importance of the whistleblower’s role in exposing misconduct and aiding enforcement agencies in holding violators accountable.