The U.S. Federal Trade Commission and seven states have asked a federal court to hold Martin Shkreli in contempt for what they describe as flagrant and repeated violations of a court order banning him from working in the pharmaceutical industry. This legal move marks a significant escalation in the dispute over Shkreli's post-release activities, raising questions about the enforceability of industry bans for convicted fraudsters.
Shkreli, widely known as "pharma bro," gained notoriety for defending his decision to raise the price of a drug by 5,000%. He was sentenced to seven years in prison in 2018 for defrauding investors. Prior to his release in 2022, a court permanently banned him from the industry, citing his illegal attempts to prevent generic competition for a specific drug. Since his release, Shkreli has become a prolific trader in pharmaceutical stocks, broadcasting his analysis through posts and livestreams on platforms including X.
In a separate development reported by STAT, European Union antitrust regulators have accepted concessions from Sanofi to settle an investigation into an allegedly misleading campaign. The European Commission alleged that Sanofi disparaged the only rival flu vaccine recommended for vulnerable patients, portraying CSL Seqirus' Fluad vaccine as inferior to its own Efluelda vaccine. The communication campaign primarily targeted health care professionals in Germany and France, where the European Commission states Sanofi holds a dominant market position. By accepting these concessions, Sanofi avoided a fine.
These two stories highlight distinct regulatory pressures facing pharmaceutical companies and their executives. While Sanofi resolved its antitrust concerns through negotiated concessions, Shkreli faces potential punitive measures for breaching a criminal court order. The FTC's request underscores the agency's willingness to enforce non-monetary penalties against individuals who violate industry participation bans, even after serving prison time.