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FTC Seeks Contempt Charge Against Martin Shkreli
Authorities claim Shkreli violated a court order banning him from the drug industry.
Event · Published · 2 min read
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The Federal Trade Commission (FTC) and seven states have taken legal action against Martin Shkreli, seeking to hold him in contempt of court for allegedly violating a lifetime ban from the pharmaceutical industry. The motion was filed in a U.S. district court in New York City, according to the FTC.
The allegations stem from a 2022 court order that barred Shkreli from participating in the pharmaceutical industry, including holding ownership stakes or making business decisions. This order was a result of Shkreli's previous illegal activities aimed at preventing generic competition to the drug daraprim, which he infamously raised in price by 5,000%.
Alleged Violations
The FTC and the states claim that Shkreli, who is now 43, has flagrantly and repeatedly violated the court order. Since his release from prison in May 2022, Shkreli has allegedly traded stocks in at least 60 pharmaceutical companies and has publicly commented on the business operations of these companies. These actions, the authorities argue, are in direct violation of the conditions set forth in the 2022 court order.
The FTC's request to the federal judge is based on evidence they claim shows Shkreli's repeated violations of the ban. The agency, along with the states involved, is seeking a contempt ruling to enforce compliance with the court's decision.
Background
Martin Shkreli, often referred to as 'pharma bro,' gained notoriety in the 2010s for his role in dramatically increasing the price of the anti-parasitic drug daraprim. In 2018, he was sentenced to seven years in prison for defrauding investors. As part of his sentencing, a court imposed a lifetime ban on his participation in the pharmaceutical industry.
The FTC and the states' recent legal action underscores the ongoing scrutiny Shkreli faces from regulatory bodies. The outcome of the contempt proceedings will determine whether Shkreli will face further penalties for his alleged non-compliance with the court order.
The court has yet to announce a date for the hearing on the contempt motion, leaving the next steps in the legal process pending.
Charges and allegations are not proof of guilt. Anyone charged is presumed innocent unless and until proven guilty in court.
Sources (3)
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