FTC asks federal court to hold ‘pharmaceutical brother’ Martin Shkreli in contempt


Washington
CNN

The Federal Trade Commission on Friday asked a federal court to hold “Pharma Bro” Martin Shkreli in contempt after Shkreli allegedly flouted a recent FTC investigation into his business dealings and failed to make the $64.6 million payment. of dollars he owed for his past wrongdoings.

The FTC’s contempt motion follows what the agency described as iyou a unsuccessful attempt to verify whether Shkreli violated a court order barring him from working in the pharmaceutical industry again.

Brianne Murphy, attorney for Shkreli, called the issue with the FTC a misunderstanding that “can be resolved relatively quickly once we get some additional information and context.” Murphy added that Shkreli’s new venture does not violate the court order because the new company “is a software company, rather than a pharmaceutical company.”

Shkreli was released from federal prison last year after serving a shortened sentence. He was convicted of securities fraud in 2017 for mismanaging two investment funds.

Shkreli also notoriously hiked prices of the life-saving drug Daraprim by 4,000% while he was the head of Turing Pharmaceuticals. His conduct earned him the title of “America’s Most Hated Man” by multiple publications. More recently, he was the subject of a 134-page decision in 2022 by the United States District Court for the Southern District of New York that banned him for life from participating in the pharmaceutical industry, as part of a FTC’s separate antitrust case against him.

This legally binding order sparked a new investigation into Shkreli’s activities in October, when public reports indicated that he had co-founded a new “web3 drug discovery software platform” known as Druglike, Inc.

When the FTC emailed Shkreli to obtain documents from him and to schedule an interview about it, Shkreli repeatedly missed deadlines and allegedly slowed his responses, according to a court filing Friday. the FTC.

“Shkreli made no attempt — much less ‘diligently,’ as required by Second Circuit law — to reasonably comply with the order,” the filing states.

The FTC also said Shkreli was ordered to make his multimillion-dollar payout — representing a refund of his ill-gotten Daraprim earnings — by March 6, 2022. But in fact, the FTC said, “To date, he has paid nothing to the judgment, and made no effort to comply with this provision of the order.

Regarding its involvement with Druglike, the FTC added, “Shkreli’s non-compliance is also clear and unambiguous: Shkreli did not submit a supplemental compliance report, provide access to relevant documents, or is made available for interview.

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