US regulators and seven states have asked a judge to hold "Pharma bro" Martin Shkreli in contempt for flagrantly violating a 2022 court order banning him from the pharmaceutical industry. Court filings allege Shkreli has been publicly trading in at least 60 pharmaceutical company stocks and sharing opinions about drug business and management on social media. Daniel Guarnera, director of the FTC’s Bureau of Competition, said the move should serve as notice that the FTC would not hesitate to enforce court orders.
After a full trial, the court found Shkreli’s conduct drove up prescription drug costs and blocked lower-cost generic entry. US District Judge Denise Cote ruled in 2022 that Shkreli’s scheme stunted generic competition and allowed his company to increase Daraprim’s price from $17.50 to $750 per tablet. New York Attorney-General Letitia James joined the FTC and six other states, urging sanctions including a complete accounting of his pharmaceutical stock trades and divestment.
Letitia James said a court-ordered lifetime ban isn’t a suggestion. FTC Chair Andrew Ferguson recused from the civil contempt action, and Commissioner Mark Meador warned a lifetime ban is only effective if breaches meet commensurate consequences. Shkreli was freed from prison in 2022 after serving nearly five years of a seven-year sentence for unrelated fraud.
He was convicted in 2018 for covering up hedge fund losses and plundering cash from a biotech group. Shkreli and his lawyer did not immediately respond to a request for comment.
Source: Financial Times Companies · Summarized by HeadlinesBriefing