FTC Says Martin Shkreli Broke Lifetime Pharma Industry Ban
Federal and state regulators allege Shkreli violated a court-ordered lifetime ban from the pharmaceutical industry in a new contempt claim.
Federal regulators and multiple states filed a contempt claim against Martin Shkreli, alleging the infamous former pharmaceutical executive defied a lifetime ban that barred him from participating in the drug industry, according to the FTC and state partners.
Shkreli was originally expelled from the pharmaceutical sector following a trial that determined he orchestrated an illegal monopoly scheme involving Daraprim, a decades-old antiparasitic medication critical to vulnerable patient populations. The lifetime ban was the centerpiece of the enforcement action designed to prevent him from wielding influence over drug markets ever again.
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The contempt filing signals that regulators believe Shkreli found ways to remain active in — or exert control over — pharmaceutical-related activities despite the sweeping prohibition. Contempt proceedings in such cases can lead to significant financial penalties or other court-ordered consequences if violations are proven.
Shkreli rose to national infamy after his company hiked the price of Daraprim by more than 5,000 percent overnight in 2015, drawing bipartisan outrage from lawmakers and the public alike. Regulators appear determined to enforce the boundaries set by the court and signal that flouting industry bans carries real legal risk.
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