FTC, Seven States Seek Contempt Ruling Against Martin Shkreli
publishers 11articles 11first reported 13 Oct, 13:00 UTCdeveloping since 13 Oct · 8 editions
The Federal Trade Commission and seven states asked a federal judge in New York on Tuesday to hold Martin Shkreli in civil contempt, alleging that he repeatedly violated a lifetime ban from the pharmaceutical industry.
In a filing in U.S. District Court in Manhattan, the FTC and the states said Shkreli traded shares in at least 60 pharmaceutical companies after his release from prison in May 2022. They also accused him of discussing pharmaceutical companies and promoting his trading activity through livestreams and posts on YouTube, X and Reddit. The filing alleges that he organized public campaigns to short some pharmaceutical stocks based on predictions that clinical trials would fail.
Regulators asked the court to require a full accounting of Shkreli’s pharmaceutical stock trades, order him to divest any pharmaceutical holdings and impose a fine equal to his trading profits plus interest, without offsetting losses. They also requested escalating penalties, potentially including incarceration, for future violations. The FTC asked that Shkreli’s sister, Leonora Izerne, and his partner, Chelsea Voss, preserve evidence related to possible violations because the agency says they may have assisted him.
The lifetime ban resulted from a 2022 ruling that Shkreli orchestrated an anticompetitive scheme involving Daraprim, whose price was raised from $17.50 to $750 per tablet. He was also ordered to surrender more than $64 million. An appeals court upheld the injunction in 2024, and the Supreme Court declined to hear his appeal.
New York, California, Illinois, North Carolina, Ohio, Pennsylvania and Virginia joined the FTC’s filing.
HOW THIS STORY WAS MADE
Written from 8 articles, 2 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written within the hour the record first saw the story; the editor revised it.
- Publishers
- 11
- Source articles
- 11
- Given to the writer
- 8, 2 with the article's own text
- Independent newsrooms
- 8
- This version written
- within the hour the record first saw the story
- Second model (editor)
- revised
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and changed it before publication. Struck words were in the draft; underlined words are its corrections.
WHAT IT FLAGGED editor revise: Delete the unsupported statement about Shkreli’s public response. - "Shkreli had not publicly responded to the allegations.": The sources provided do not say that Shkreli had not publicly responded; CNBC only says it requested comment from an attorney for Shkreli.
THE DRAFT AND THE CHANGES
FTC, Seven States Seek Contempt Ruling Against Martin Shkreli
The Federal Trade Commission and seven states asked a federal judge in New York on Tuesday to hold Martin Shkreli in civil contempt, alleging that he repeatedly violated a lifetime ban from the pharmaceutical industry.
In a filing in U.S. District Court in Manhattan, the FTC and the states said Shkreli traded shares in at least 60 pharmaceutical companies after his release from prison in May 2022. They also accused him of discussing pharmaceutical companies and promoting his trading activity through livestreams and posts on YouTube, X and Reddit. The filing alleges that he organized public campaigns to short some pharmaceutical stocks based on predictions that clinical trials would fail.
Regulators asked the court to require a full accounting of Shkreli’s pharmaceutical stock trades, order him to divest any pharmaceutical holdings and impose a fine equal to his trading profits plus interest, without offsetting losses. They also requested escalating penalties, potentially including incarceration, for future violations. The FTC asked that Shkreli’s sister, Leonora Izerne, and his partner, Chelsea Voss, preserve evidence related to possible violations because the agency says they may have assisted him.
The lifetime ban resulted from a 2022 ruling that Shkreli orchestrated an anticompetitive scheme involving Daraprim, whose price was raised from $17.50 to $750 per tablet. He was also ordered to surrender more than $64 million. An appeals court upheld the injunction in 2024, and the Supreme Court declined to hear his appeal.
New York, California, Illinois, North Carolina, Ohio, Pennsylvania and Virginia joined the FTC’s filing. Shkreli had not publicly responded to the allegations.
Written by a language model from the sources above, then checked by a second model that may only cut, attribute or correct. How it works →