2 responses to “Pitfalls Emerge in Dodd-Frank Whistleblower Bounty Provision”

  1. […] An article in the November 1, 2010 Wall Street Journal article (here) notes a number of concerns about the new whistleblower provisions, the first and foremost of which is that the bounty provisions provide incentives for prospective whistleblowers to race to the SEC in order to be the first to report violations, which in turn encourages prospective whistleblowers to bypass internal fraud detection mechanisms mandated by the Sarbanes Oxley act. Bruce Carton previously discussed many of these same concerns on his Securities Docket blog, here. […]

  2. […] actions routinely reach figures in the tens of millions of dollars, whistleblowers stand to become multi-millionaires over night. Such an incentive has led some commentators to worry about a deluge of tips that […]