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HARRISBURG -- Pennsylvania Attorney General Dave Sunday has joined the Federal Trade Commission and six other states in asking a federal judge to hold former pharmaceutical executive Martin Shkreli in contempt for allegedly violating a lifetime ban from the pharmaceutical industry.
The coalition filed a motion Tuesday alleging Shkreli repeatedly violated a 2022 court order by trading pharmaceutical company stocks and publicly commenting on the business operations and management of drug manufacturers.
The filing alleges Shkreli has traded stocks in at least 60 pharmaceutical companies since his release from prison in May 2022, despite a federal injunction prohibiting him from participating in the industry.
"Martin Shkreli was held accountable for conduct that drove up the cost of a life-saving medication and blocked lower-cost alternatives for patients. A court-ordered industry ban is not a suggestion, it is a legal obligation," Sunday said. "We are asking the court to enforce that order and ensure Shkreli faces consequences if he has violated its terms."
The lifetime ban stems from a federal antitrust case involving Daraprim, a medication used to treat toxoplasmosis, a potentially fatal parasitic infection.
In February 2022, the U.S. District Court for the Southern District of New York ruled that Shkreli orchestrated an illegal scheme to maintain a monopoly on Daraprim and prevent lower-cost generic alternatives from entering the market.
The court found that the scheme allowed Shkreli and his codefendants to increase the medication's price from $17.50 to $750 per tablet.
As part of its ruling, the court permanently barred Shkreli from participating in the pharmaceutical industry and ordered him to pay more than $64 million.
According to the latest filing, Shkreli violated the injunction by buying and selling pharmaceutical stocks and using social media platforms, including YouTube, X and Reddit, to discuss investments and influence public perceptions of pharmaceutical companies.
The coalition alleges Shkreli livestreamed his stock trades and encouraged viewers to invest in biotechnology companies.
In one broadcast cited in the filing, Shkreli told viewers, "I'm showing you how to trade and invest in biotech."
The motion also alleges Shkreli used livestreams to promote efforts to short pharmaceutical company stocks, predicting that certain companies' clinical trials would fail.
The 2022 injunction prohibits Shkreli from directly or indirectly participating in the pharmaceutical industry, including owning interests in pharmaceutical companies or attempting to influence their management or business operations.
The FTC and participating states are asking the court to require Shkreli to explain why he should not be held in civil contempt.
They also are seeking sanctions that would require him to sell any pharmaceutical company stocks he owns and surrender profits earned from pharmaceutical stock trading, plus interest, without offsetting those profits against trading losses.
The coalition is requesting escalating penalties for future violations, including additional fines and possible incarceration.