Court Upholds Industry Ban Against Fraudster

(USNewsBreak.com) – The FBI arrested Martin Shkreli on securities fraud charges in December 2015. A federal court sentenced him to seven years in jail in 2018, but the prison system released him early in May 2022. After the Federal Trade Commission (FTC) sued him, the government issued him a lifetime ban from working in the pharmaceutical industry, a ruling he appealed. A federal judge recently upheld the ban.

Because Shkreli’s crimes included securities fraud and he had previously engaged in price-fixing, an appellate court ruled it would uphold the ban despite the Pharma Bro’s complaint that it was excessive and violated his free speech. In the opinion, the judge stated that the “injunction was a reasonable measure to protect the public from” the possibility of Shkreli’s “recurring anticompetitive conduct” within Big Pharma.

Martin Shkreli's lifetime ban from the pharmaceutical industry was upheld by a federal appeals court in New York on Tuesday. https://t.co/7TqMKAJSct

— ABC News (@ABC) January 24, 2024

Letitia James, New York’s Attorney General, also issued a statement following the ruling, saying the decision holds Shkreli accountable. His attorney had a completely different opinion, calling Shkreli a true genius whom the government should encourage to work in the industry, especially since his conviction had nothing to do with the scandal surrounding Daraprim.

The former head of KaloBios Pharmaceuticals and Turing Pharmaceuticals had previously made headlines when he jacked up the price of Daraprim, an anti-parasite medication often prescribed to HIV patients, by nearly 5,000%, from $17.50 to $750 per pill. His arrest and subsequent prison sentence didn’t relate to this incident, but the stunt made him a notable figure in the industry. He and his partner at the time, Kevin Mulleady, had engaged in a scheme to deny generic drugmakers access to Daraprim, giving his company a monopoly on the drug and thus increasing his profits.

This ruling won’t end Shkreli’s legal battles, though. He has the option to appeal the decision by two means. He can take the matter to the Supreme Court or ask the 2nd Circuit Court’s full judge panel to rehear the appeal. His attorneys have said that they are exploring their options.