Federal regulators are once again setting their sights on Martin Shkreli, asking a federal judge to hold the former pharmaceutical executive in contempt of court. The Federal Trade Commission, joined by seven states, alleges that Shkreli has repeatedly violated a lifetime ban prohibiting him from trading pharmaceutical stocks and publicly offering commentary on the industry. Court filings state that he has actively traded shares in at least 60 pharmaceutical companies and broadcasted his market opinions across online livestreams.
Shkreli first gained notoriety in the mid-2010s after hiking the price of the life-saving medication Daraprim from $13.50 to $750 per pill. His subsequent legal troubles culminated in a 2017 conviction on securities fraud charges unrelated to the pricing scandal, leading to a seven-year prison sentence. Following his release, a 2022 court order explicitly barred him from engaging in the pharmaceutical stock market or managing drug companies.
According to the FTC, those restrictions were routinely ignored. Regulators point to various livestreams where Shkreli allegedly demonstrated biotechnology investing strategies and orchestrated campaigns to short specific pharma stocks ahead of clinical trial results. Daniel Guarnera, Director of the FTC’s Bureau of Competition, emphasized that court orders carry binding obligations designed to protect consumers from anticompetitive behavior and inflated prescription drug costs.
The regulatory agencies are urging the court to compel Shkreli to divest all currently held pharmaceutical stocks and surrender profits generated from prohibited trades, alongside potential financial penalties and future incarceration risks. Legal representatives for the federal agency maintain that strict enforcement remains necessary to uphold judicial authority and protect market integrity.
FTC Seeks Contempt Order Against Martin Shkreli Over Stock Trades
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