FTC, Seven States Seek Contempt Ruling Against Martin Shkreli
publishers 23articles 23first reported 13 Oct, 13:00 UTCdeveloping since 13 Oct · 8 editions
The Federal Trade Commission and seven states asked a federal judge in Manhattan on Tuesday to hold Martin Shkreli in civil contempt, alleging that he repeatedly violated a lifetime ban on participating in the pharmaceutical industry.
According to the court filing, Shkreli traded shares in at least 60 pharmaceutical companies after leaving prison in May 2022. Regulators also allege that he discussed pharmaceutical companies and his trading through livestreams and posts on YouTube, X and Reddit, including organizing campaigns to short stocks based on predictions that clinical trials would fail.
The FTC and the states are asking 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 profits from those trades, plus interest, without offsetting losses. They also seek escalating penalties for future violations, potentially including incarceration.
The lifetime ban stems from a 2022 judgment finding that Shkreli orchestrated an anticompetitive scheme to preserve Vyera Pharmaceuticals’ monopoly over Daraprim, whose price rose from $17.50 to $750 per tablet. He was also ordered to surrender more than $64 million. A federal appeals court upheld the injunction in January 2024, and the Supreme Court declined to hear his appeal that October.
New York, California, Illinois, North Carolina, Ohio, Pennsylvania and Virginia joined the FTC’s filing. CNBC said it had requested comment from Shkreli’s attorney.
HOW THIS STORY WAS MADE
Written from 8 articles, 3 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written 6 h after the record first saw the story; the editor kept it as written.
- Publishers
- 23
- Source articles
- 23
- Given to the writer
- 8, 3 with the article's own text
- Independent newsrooms
- 8
- This version written
- 6 h after the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and published it as written.
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