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Martin Shkreli violated lifetime pharmaceutical ban: FTC
CNBC • • business
Key Points:
- The Federal Trade Commission (FTC) and seven states have asked a federal judge to hold Martin Shkreli in contempt for allegedly violating a 2022 court order that banned him for life from the pharmaceutical industry.
- Since his release from prison in May 2022, Shkreli is accused of publicly trading at least 60 pharmaceutical stocks and commenting on pharmaceutical companies, actions prohibited by the court order.
- The FTC and states seek a court order requiring Shkreli to divest his pharmaceutical stocks, pay fines equal to his profits from trading, and face escalating penalties for future violations, including possible incarceration.
- The lifetime ban originated from Shkreli's role in an anti-competitive scheme that led to a massive price hike of the drug Daraprim, and he was also ordered to disgorge over $64 million.
- This civil case is separate from Shkreli's 2017 criminal conviction for securities fraud, for which he was sentenced to seven years in prison and released in 2022.
