Pharma Bro's Ban Broken? FTC Seeks Contempt

The Federal Trade Commission has initiated legal action, requesting a federal judge hold Martin Shkreli in contempt of court. This action stems from allegations that Shkreli has violated a ban imposed in 2022, which prohibited him from trading pharmaceutical industry stocks or publicly commenting on the business operations of such companies.

Shkreli, widely known for drastically increasing the price of the drug Daraprim, was convicted of securities fraud in 2017 and served approximately four years of a seven-year sentence. The FTC's complaint details that since his release, Shkreli has allegedly engaged in trading stocks of at least 60 different pharmaceutical companies. He has also reportedly used online livestreams to share his opinions and promote strategies for shorting stocks, predicting the failure of key clinical trials.

Seven states have joined the FTC in this legal pursuit. The agency is seeking specific remedies, including Shkreli divesting his current pharmaceutical stock holdings, paying a fine equivalent to his trading profits, and facing escalating consequences for future violations. FTC officials emphasize their commitment to enforcing court orders rigorously.