Martin Shkreli, the controversial former pharmaceutical executive notorious for dramatically increasing the price of a life-saving medication, is facing fresh allegations that he breached a lifetime ban on participating in the pharmaceutical industry.
The Federal Trade Commission (FTC) and regulators from seven US states have asked a federal judge to hold Shkreli in contempt of court, alleging that he traded pharmaceutical company stocks and publicly shared his views on businesses operating in the sector despite being barred from the industry.
In a court filing, the regulators urged US District Judge Denise Cote to impose a financial penalty equivalent to the profits Shkreli earned from pharmaceutical stock trading since February 4, 2022. Shkreli’s legal representative had not immediately responded to a request for comment.
From pharmaceutical price hikes to a lifetime ban
Shkreli rose to national notoriety in 2015 while serving as chief executive of Turing Pharmaceuticals. The company sharply increased the price of Daraprim, a drug used to treat certain parasitic infections, from $17.50 to $750 per tablet.
The decision triggered widespread outrage, while Shkreli’s unapologetic response to the backlash earned him the nickname “Pharma Bro.”
His business activities later came under scrutiny over allegations of anti-competitive conduct. In 2022, Judge Cote found him liable for violating antitrust laws and imposed a lifetime ban preventing him from participating in the pharmaceutical industry.
The latest filing argues that his stock trades and commentary about pharmaceutical companies crossed the boundaries set by that court order. Regulators are now seeking judicial action over the alleged violations.
Previous prison sentence adds to his legal history
Shkreli’s legal troubles extend beyond the pharmaceutical industry. In 2017, he was convicted of fraud-related charges in a separate criminal case and sentenced to seven years in prison. He was released in 2022.
The latest dispute puts his post-prison activities back under the spotlight, with regulators seeking financial penalties tied directly to the profits they allege he made in breach of the lifetime restriction.
The court will now have to consider the regulators’ request and determine whether Shkreli violated the terms of the existing order.
