The U.S. Federal Trade Commission ( FTC ) and seven states requested on Tuesday that a federal judge determine that Martin Shkreli, infamous as the "bad boy of the pharmaceutical industry," had contempted the court, accusing him of "outright and repeated violations" of a 2022 civil court order that barred him for life from entering the pharmaceutical industry.
According to a press release, FTC and these states stated that since Schkreli's release from prison in May 2022, he has violated the aforementioned court orders by, among other things, publicly trading at least 60 stocks in the pharmaceutical industry, as well as "publicly disseminating his views on the business and management of many pharmaceutical companies."
This application for contempt of court requests the judge to order Schkreli to "dispose of any pharmaceutical company shares he currently holds," and to "pay a fine equivalent to the profits from any transactions of his pharmaceutical company shares (plus interest before the judgment), which shall not be offset by losses."
The application also requests that the judge ensure that Shkreli "faces clear and progressively escalating consequences for any future violations, including financial penalties and possible imprisonment."
Committee member Mark Midol stated in a statement: "A lifetime industry ban is only effective when violations of the ban incur consequences that are commensurate with the seriousness of the order."
This court order stems from a finding that Schering-Plough organized anti-competitive schemes to maintain its monopoly position in the market for the antiparasitic drug Daraprim. Schering-Plough significantly increased the price of Daraprim from $17.50 per tablet to $750 per tablet.
In addition to a lifetime ban from entering the pharmaceutical industry, the judge also ordered Schkrelli to hand over more than $64 million in illicit gains.
The civil case that led to this command is unrelated to another criminal case. The latter concluded with Schkreli being convicted of securities fraud in 2017; the charges involved the hedge fund he managed as well as another pharmaceutical company he founded. Schkreli was sentenced to 7 years in federal prison in 2018 and was released in 2022, with his release time taking into account the period he was detained before the verdict and other factors.
FTC Daniel Guarnella, the director of the Competition Bureau, stated in a statement on Tuesday: "After a full trial, the court determined that Martin Shkreli's actions drove up the cost of prescription drugs for American patients and prevented cheaper generic drugs from entering the market."
Gurnella said, 'When the court makes a judgment, whether it is a settlement or an order following the trial, the defendant must fulfill their obligations. Today's action should demonstrate that FTC will not hesitate in enforcing court orders and pursuing violations.'












