Recoveries
In successful whistleblower enforcement actions, recoveries refer to the financial gains retrieved from individuals or organizations found to have engaged in wrongdoing. These funds can come from various sources, including fines and penalties imposed for illegal activity, disgorged profits gained through misconduct, or settlement payments reached to avoid lengthy legal proceedings.
The distribution of these recovered funds typically involves the government and whistleblowers. Recoveries serve multiple purposes: holding violators accountable, rewarding whistleblowers, and potentially compensating victims.