Martin Shkreli is back in the crosshairs of the federal government for not staying out of pharma
Martin Shkreli made a name for himself for gouging the price of Daraprim by 4,000%, saying he should’ve raised it even higher, and then facing an expected backlash from both Congress and the courts over his greed. The result: a lifetime ban from the pharma industry and a $65 million fine.
Now, the Federal Trade Commission said today in a court filing in the southern district of New York that Shkreli is violating that ban by failing to pay his fine and by forming a new company, called “Druglike, Inc.,” which claims to be involved in “early stage drug discovery.”
The response from the FTC follows a federal judge in New York’s decision in February to uphold the lifetime industry ban placed on Shkreli after the ex-“Pharma Bro” appealed the decision. That order requires Shkreli to provide compliance reports and other documents to show that he’s adhering to this lifetime ban.
Shkreli and his lawyers largely objected to the scope of the ban, arguing it was too vague and burdensome. The court, however, essentially prevented Shkreli from making any public statements about the pharma industry at all.
But the FTC says he still isn’t in compliance with that order and the commission is asking the court to now order him to submit a complete compliance report within 10 days of the court’s decision, provide the FTC with access to all relevant documents or copies of all relevant documents previously requested by the FTC, and to sit for an interview within three weeks.
Shkreli downplayed the filing in his newsletter on Sunday:
My lawyers and I missed a deadline to file a routine update with the FTC and schedule a meeting. That will be done. I’m not in contempt and won’t be ‘in trouble’ over this. Mea culpa. It turns out some people on my team were sick during the response period and there was some telephone tag. Total non-event, but don’t tell that to the media who insists this is somehow ‘news’.
Editor’s note: Article updated with Shkreli’s comment.