FTC Alleges Martin Shkreli Violated Lifetime Pharma Ban
The Federal Trade Commission (FTC) and seven states have asked a federal judge to hold Martin Shkreli in contempt for allegedly violating his lifetime ban from the pharmaceutical industry. He is accused of trading drug company stocks and discussing the industry during livestreams.
The Federal Trade Commission (FTC) and the attorneys general of seven states have asked a federal judge to hold Martin Shkreli in contempt for allegedly violating his lifetime ban from the pharmaceutical industry. Shkreli, a former pharmaceutical executive, received the lifetime ban in 2022 following a seven-year prison sentence for a fraudulent scheme that included increasing the price of a life-saving drug by over 4,000 percent.
According to the FTC and the states, Shkreli has "flagrantly and repeatedly" violated the ban for nearly its entire duration. The allegations state that he has engaged in stock trading for dozens of drug companies and discussed the industry during livestreams on social media platforms.
The involved states are New York, California, Illinois, North Carolina, Ohio, Pennsylvania, and Virginia. These are the same states that, along with the FTC, sued Shkreli in 2020 over an "elaborate anticompetitive scheme" involving the anti-parasitic drug Daraprim. In that case, the drug's price increased from $17.50 to $750 per pill almost overnight, while blocking generic competitors from entering the market.
The petition to the federal court seeks to hold Shkreli in contempt of court. A ruling on the matter is pending.