Key takeaways:
- The FTC has asked a federal court to hold Martin Shkreli in contempt for forming a new drug company in violation of a judge’s ban.
- The FTC has requested that the court impose sanctions on Shkreli, including a fine or other penalties, to ensure that he complies with the court’s order.
- If found in contempt, Shkreli could face additional penalties, including a fine or other sanctions.
The Federal Trade Commission (FTC) has asked a federal court to hold notorious “pharma bro” Martin Shkreli in contempt of court for forming a new drug company in violation of a judge’s ban.
Shkreli was released from prison last year and in February was banned “for life from directly or indirectly participating in any manner in the pharmaceutical industry” as a result of the FTC’s antitrust lawsuit against him and a prior drug company that he founded.
The order stemmed from Manhattan federal court Judge Denise Cote’s ruling that Shkreli oversaw an illegal scheme to maintain a monopoly on the life-saving drug Daraprim. An earlier court order prohibited Shkreli from participating in the pharmaceutical industry and ordered him to pay up to $65 million in monetary relief.
The FTC has now asked the United District Court for the Southern District of New York to find Shkreli in civil contempt for failing to satisfy the monetary judgment and for forming a new company, which the FTC believes is in violation of the court order.
The FTC has requested that the court impose sanctions on Shkreli, including a fine or other penalties, to ensure that he complies with the court’s order. The FTC has also asked the court to order Shkreli to provide an accounting of his assets and to appoint a receiver to oversee the dissolution of the new company.
The court has yet to rule on the FTC’s request. If found in contempt, Shkreli could face additional penalties, including a fine or other sanctions.
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