US regulators and seven states want a federal judge to hold Martin Shkreli in contempt, saying he broke a lifetime ban from the pharmaceutical industry by trading pharma stocks after his release from prison.
01Summary
- 01The FTC and seven states filed the contempt claim on Tuesday in federal court.
- 02They say Martin Shkreli violated a 2022 order by trading in at least 60 pharmaceutical stocks and commenting publicly on drug companies.
- 03The filing asks for divestment of any pharma shares, repayment of trading profits plus interest, and possible fines or incarceration for future breaches.
- 04The ban followed a court finding that Shkreli ran an anti-competitive scheme around Daraprim, whose price rose from $17.50 a tablet to $750 a pill.
02Why it matters
The case could force Shkreli to give up any pharma holdings and face penalties for breaching a court order. It also shows US regulators are still enforcing the landmark ban tied to Daraprim pricing.
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