Similar to the Sarbanes-Oxley Act, the Dodd-Frank Act includes whistleblower protections and remedial provisions for employees who suffer retaliation in connection with whistleblower actions. Unlike Sarbanes-Oxley, however, the Dodd-Frank Act does not limit such protection to employees of publicly-traded companies and provides for a private right of action in connection with a whistleblower claim.
The Dodd-Frank Act also creates incentives for securities whistleblowers. Specifically, a whistleblower, subject to certain limitations, is eligible to receive between 10% and 30% of the amount collected by the SEC in connection with any judicial or administrative action based on information provided by the whistleblower that results in monetary sanctions exceeding $1 million. The whistleblower award program provides that a whistleblower may provide such information anonymously. However, if a whistleblower both provides the information and makes a claim under the award program anonymously, the whistleblower must be represented by counsel. This requirement reportedly has resulted in increased whistleblower tips to plaintiffs’ attorneys, which may be a direct result of increased attorney advertising. Of the more notable reported advertisements, a firm in New York City has begun advertising their whistleblower services in movie theaters, in particular, prior to the showing of the movie "Wall Street: Money Never Sleeps."