The Federal Trade Commission, joined by seven states, has asked a federal court to hold Martin Shkreli in contempt for what it calls flagrant violations of an order barring him from the pharmaceutical industry. The request centers on Shkreli's holdings of pharmaceutical stocks, which the agency says he must now divest.
Shkreli, known as "pharma bro" for raising the price of the antiparasitic drug Daraprim by 5,000%, was sentenced to seven years in prison for defrauding investors. After his release in 2022, a court banned him from ever working in the drug industry again, citing his earlier attempts to block generic competition to Daraprim.
The new filing alleges that Shkreli repeatedly violated that ban by acquiring pharma stocks. The FTC and states are now seeking a contempt finding and an order requiring him to sell those holdings. The case is the latest legal entanglement for Shkreli since his release.