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- The Federal Trade Commission and seven states asked a federal judge on Tuesday to hold notorious “Pharma bro” Martin Shkreli in contempt.
- The FTC and the states allege that Shkreli “flagrantly and repeatedly violated” a 2022 court order that had banned him for life from the pharmaceutical industry.
- The civil case that led to the order is unrelated to the criminal case that ended with Shkreli’s conviction in 2017 on securities fraud charges related to hedge funds he once operated and another drug company he founded
Former drug company executive Martin Shkreli and his lead attorney Benjamin Brafman arrive at U.S. District Court for the fourth day of jury deliberations in his securities fraud trial in the Brooklyn borough of New York City, U.S., August 3, 2017. Amr Alfiky | Reuters
The Federal Trade Commission and seven states asked a federal judge on Tuesday to hold notorious “Pharma bro” Martin Shkreli in contempt, alleging he “flagrantly and repeatedly violated” a 2022 civil court order that had banned him for life from the pharmaceutical industry.
The FTC and the states say Shkreli, since being released from prison in May 2022, violated that court order by “publicly trading in pharmaceutical industry stocks and broadcasting his opinions about the business and management of many pharmaceutical industry companies.”
FTC Commissioner Mark Meador said in a statement that given Shkreli’s “repeated violations” of the court order, “escalating consequences for future misconduct — including financial penalties and, if necessary, incarceration — are warranted.”
“A lifetime industry ban is only effective if breaches are met with consequences commensurate with the seriousness of the order,” Meador said.
The court order stems from a finding that Shkreli organized an anti-competitive scheme to perpetuate his company’s monopoly in the anti-parasitic drug Daraprim.
The civil case that led to the order is unrelated to the criminal case that ended with Shkreli’s conviction in 2017 on securities fraud charges related to hedge funds he once operated and another drug company he founded. Shkreli was sentenced to seven years in federal prison in 2018, and was released in 2022 with credit for time locked up before he was sentenced and other factors.
“After a full trial, the court found that Martin Shkreli’s conduct drove up prescription drug costs for American patients and blocked the entry of lower-cost generics,” said Daniel Guarnera, director of the FTC’s Bureau of Competition, in a statement on Tuesday.
“When judgment is entered by a court, whether it’s a settlement or an order following a trial, defendants must fulfill their obligations,” Guarnera said. “Today’s action should serve as notice that the FTC will not hesitate to enforce violations of court orders.”
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