The Federal Trade Commission (FTC) has asked that Martin Shkreli, also known as “pharma bro,” be held in contempt for refusing to cooperate with authorities regarding a probe into whether he breached a court order banning him from conducting business in the pharmaceutical industry.
Back in 2017, Mr. Shkreli was convicted of securities fraud regarding a company and two hedge funds he owned. Then, in a separate matter in early 2022, a federal court ruled that Mr. Shkreli illegally raised the price of a vital AIDS drug, and banned him from working in the pharmaceutical sector. This time, however, the FTC alleges Shkreli violated the court order by co-founding a new company in 2022 called Druglike Inc., a drug discovery software program.
The FTC argued that Shkreli has failed to provide investigators with compliance reports and company records, and has turning down interviews with them. “Martin Shkreli’s failure to comply with the court’s order demonstrates a clear disregard for the law,” said FTC Bureau of Competition Director Holly Vedova in a statement. “The FTC will not hesitate to deploy the full scope of its authorities to enable a comprehensive investigation into any potential misconduct.”
In 2015, Vyera Pharmaceuticals LLC, which Mr. Shkreli was the CEO of at the time, paid $55 million for exclusive rights to the antiparasitic drug Daraprim, just to raise the price from $17.50 per tablet to $750 and block other pharmaceutical firms from manufacturing generic versions.
Not only was Shkreli banned from the pharmaceutical industry as a result for the widely condemned move, he also paid a $65 million fine equivalent to the profits his company made from the illegal price hike. He spent seven years behind bars after being convicted of securities fraud in 2017, and then released later in 2022 – after which he spent some time taking aim at a recent Mark Cuban venture.
Information for this story was found via the FTC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
