Home World Martin Shkreli faces FTC contempt claim in drug case

Martin Shkreli faces FTC contempt claim in drug case

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Martin Shkreli, former CEO of Turing Pharmaceuticals AG, center, pauses as he speaks to the media with his attorney Benjamin Brafman, right, outside federal court in Brooklyn, New York, U.S., Friday, Aug. 4, 2017.

Peter Foley | Bloomberg | Getty Images

Federal Trade Commission on Friday asked what the notorious “pharmaceutical nephew” Martin Shkreli will be detained contempt of court for formation a new pharmaceutical company in violation of a judge’s ban on the convicted fraudster from working in the pharmaceutical industry.

Shkreli, who was released from prison last year, in February was banned “for life directly or indirectly
any involvement in the pharmaceutical industryā€¯ as a result of an FTC antitrust lawsuit against him and a pharmaceutical company he previously founded.

The order follows a January 2022 ruling by Manhattan federal judge Denise Cote that Shkreli oversaw an illegal scheme to maintain a monopoly on the life-saving drug Daraprim that continued even while he was in prison for an unrelated conviction. a securities fraud case.

In its filing with the court on Friday, the FTC noted that Shkreli in July announced the creation of a new company, Druglike, “which appears to be involved in the production of drugs.”

The statement quoted Druglike as saying press release about the announcement, which called the company “a Web3 drug discovery software platform co-founded by Martin Shkreli.”

The FTC said the company’s creation, as well as Shkreli’s failure to pay his nearly $25 million share of the $64.6 million he is owed in the lawsuit, indicate he is violating court orders in the case.

The FTC and a group of states suing Shkreli said in a filing that he failed to comply with their requests to provide them with documents and interviews as part of an investigation into whether his involvement in Druglike violated Coates’ industry restraining order.

The FTC said it ordered Shkreli to provide the agency with the information.

“Martin Shkreli’s failure to comply with the court order demonstrates a clear disregard for the law,” said Holly Vedova, director of the FTC’s Bureau of Competition.

“The FTC will not hesitate to use its full authority to conduct a comprehensive investigation into any potential violations,” Vedova said.

Benjamin Brafman, Shkreli’s attorney, declined to comment on the FTC’s filing.

Shkreli gained notoriety in mid-2015 when his pharmaceutical company, now known as Vyera Pharmaceuticals, unapologetically raised the price of Daraprim, an anti-parasitic drug used to treat pregnant women, infants and people with HIV, by more than 4,000 %. From $17.50 per pill to $750.

In December 2015, federal prosecutors in Brooklyn, New York, indicted Shkreli in connection with misleading investors in two hedge funds he previously ran and manipulating the shares of another the company he foundedRetrophin, which is now known as Travere Therapeutics.

In mid-2017, Shkreli was convicted on several counts of the case. His post-trial release is $5 million was canceled weeks after a judge for offering his Facebook followers a $5,000 cash reward to give him hair samples of former Democratic presidential candidate Hillary Clinton.

Shkreli was sentenced to seven years in prison in 2018. In May of last year, he was released to a federal detention center.

Shkreli was brought to New York from a prison in Pennsylvania by a friend, Edmund Sullivan, who previously served on Retrophin’s board of directors.

Sullivan is named in court documents in Shkreli’s criminal case as one of seven individuals who, at Shkreli’s direction, received thousands of shares in a shell company used by Retrophin as a vehicle for public trading. Sullivan has not been charged with wrongdoing in the case.

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