FTC wants 'pharma bro' held in contempt

Jan. 23, 2023

The Federal Trade Commission has asked a federal judge to hold Martin Shkreli in contempt for failing to provide the FTC with information needed to determine whether he is violating a previous order by the judge that banned him from working in the pharma industry for life.

In a motion filed last week in the U.S. District Court for the Southern District of New York, the FTC and co-plaintiffs said the infamous 'pharma bro' has failed to comply with requests that he turn over documents and show up for an interview as part of their investigation into whether he has violated the pharma industry ban by forming and operating his new company — Druglike Inc.

Druglike — ironically, given Shkreli's track record for hiking drug prices —  claims to be a "platform for democratizing the access, costs, and rewards of early-stage drug discovery."

One year agoU.S. District Judge Denise Cote banned Shkreli for life from directly or indirectly participating in any manner in the pharmaceutical industry and ordered to return the $64.6 million in profits he and his former company made after gouging the price of a life-saving drug. Shkreli was indicated in 2020 — while serving a seven-year sentence for unrelated securities fraud — for running a scheme to monopolize the market and block generic rivals of the drug Daraprim.

Now, according to the FTC, Shkreli has disregarded the agency’s repeated requests for him to provide a compliance report and access to relevant records. The FTC and state enforcers have now asked the court to order Shkreli to comply with these information requests within 21 days of the court’s decision.