FTC, 7 States Seek Contempt Against Shkreli Over 60 Pharma Stock Trades
Updated
Updated · CNBC · Oct 13
FTC, 7 States Seek Contempt Against Shkreli Over 60 Pharma Stock Trades
3 articles · Updated · CNBC · Oct 13
Summary
Federal regulators and seven states asked a Manhattan judge to hold Martin Shkreli in contempt, saying he repeatedly breached a 2022 lifetime ban from the pharmaceutical industry after leaving prison.
At least 60 pharmaceutical stock trades and public commentary on drug companies via YouTube, X and Reddit form the core of the alleged violations, according to the court filing.
The filing seeks to force Shkreli to divest any pharma holdings, surrender trading profits plus interest, and face escalating penalties for future breaches, including possible incarceration.
The ban grew out of a ruling that Shkreli preserved Vyera's Daraprim monopoly after raising the drug's price from $17.50 to $750 per pill; he was also ordered to disgorge more than $64 million.
The 2nd Circuit upheld the injunction in January 2024 and the Supreme Court declined review in October 2024, underscoring the FTC's push to enforce court orders against repeat violators.