The Federal Trade Commission and seven state co-plaintiffs moved on Tuesday in U.S. district court in New York to hold former pharmaceutical executive Martin Shkreli in contempt, alleging he breached the terms of a ban that bars him from participating in the pharmaceutical industry.
Allegations of trading and public commentary
In the filing, the FTC and the states say the 43-year-old — widely known as the "Pharma Bro" — has traded shares in at least 60 pharmaceutical companies and publicly commented on their businesses since his release from prison in May 2022. According to the motion, those activities contravene release conditions that bar Shkreli from holding ownership stakes in, or making business decisions for, companies in the pharmaceutical sector.
Legal action and requested relief
The agencies asked the court to find Shkreli in contempt for the alleged violations. The motion seeks judicial enforcement of the 2022 restrictions, which the FTC and the state plaintiffs say are intended to prevent him from exerting influence in the pharmaceutical industry.
Background and next steps
Shkreli became a high-profile figure in the pharmaceutical sector following a prior criminal conviction and later imprisonment. The FTC and the state plaintiffs will now seek the court's determination on whether the conduct alleged in their motion amounts to contempt. Any further proceedings will be scheduled by the district court, which will decide what, if any, sanctions or remedial measures are appropriate.