FTC and Seven States Seek Contempt Action Against Martin Shkreli for Alleged Violation of Pharma Industry Ban
The Federal Trade Commission (FTC) and seven states have filed a contempt claim against former pharmaceutical executive Martin Shkreli, alleging he violated a court order that banned him from the industry. The legal action claims Shkreli has repeatedly breached this ban since his release from prison in May 2022 by trading in pharmaceutical stocks and publicly commenting on drug company operations. The original court order stemmed from an anti-competitive scheme involving Daraprim, a medication for which Shkreli's firm raised prices dramatically. The FTC emphasized that the action is meant to enforce compliance with legal judgments and send a message about accountability. Commissioner Mark Meador stated that escalating consequences are warranted given Shkreli’s repeated violations. The case highlights ongoing regulatory scrutiny of past misconduct in the pharmaceutical sector, particularly concerning practices that affect drug pricing and market competition.