FTC seeks contempt finding against Shkreli over pharma ban violation

Summarised from 2 outlets · Updated 13 Oct, 16:20 · Archive

The FTC and seven states allege Martin Shkreli violated a lifetime ban from the pharmaceutical industry by trading in stocks.

The Federal Trade Commission and seven states have asked a federal judge to hold Martin Shkreli in contempt for allegedly violating a 2022 court order banning him for life from the pharmaceutical industry. Shkreli was released from prison in May 2022.

The authorities allege that Shkreli has repeatedly violated the ban by publicly trading in at least 60 pharmaceutical industry stocks and broadcasting opinions about pharmaceutical companies' business and management. FTC Commissioner Mark Meador stated in a filing that Shkreli "has repeatedly ignored the injunction's clear and unambiguous prohibitions and has shown little regard for the obligations imposed on him."

The contempt filing seeks multiple remedies: divestment of any pharmaceutical stocks Shkreli currently owns, financial penalties equal to his profits from pharmaceutical stock trading with prejudgment interest, and clear escalating consequences for future violations including potential incarceration. Shkreli has already appealed the original 2022 ban but lost that appeal.

The industry ban stems from a finding that Shkreli organised an illegal scheme to perpetuate a monopoly for the anti-parasitic drug Daraprim, which he had raised from $17.50 per tablet to $750 per pill. A judge had also ordered him to disgorge more than $64 million.

How it is being reported

• FTC asks judge to find 'Pharma Bro' Martin Shkreli in contemptMartin Shkreli faces contempt of court because he allegedly violated a 2022 court order banning him from the pharmaceutical industry.UPI · 13 Oct, 16:02
• Martin Shkreli violated lifetime pharma industry ban, FTC and states say in contempt claimShkreli was banned from the pharmaceutical industry after a trial found that he organized an illegal scheme to perpetuate a monopoly for the drug Daraprim.CNBC · 13 Oct, 14:22

In this story: Martin Shkreli · Federal Trade Commission · Daraprim

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