FTC Seeks Contempt Order Against Martin Shkreli Over Alleged Pharma Stock Trades
Federal regulators have asked a U.S. district court judge in New York to hold former drug executive Martin Shkreli in contempt. The Federal Trade Commission alleges that Shkreli violated a lifetime ban barring him from participating in the pharmaceutical industry or holding ownership stakes in pharmaceutical firms. Court filings state that Shkreli has traded at least 60 pharmaceutical stocks and shared opinions about healthcare companies across social media platforms including YouTube, X, and Reddit.
The enforcement action follows a 2022 court order issuing a lifetime industry ban against Shkreli, who previously served as chief executive of Retrophin and Turing Pharmaceuticals, now known as Vyera Pharmaceuticals. Regulators claim Shkreli engaged in four distinct phases of trading since July 2022, including trading competitions, shorting small biotechnology firms, and launching a $10 million trading challenge in June 2026. Shkreli previously served prison time following a 2017 conviction for securities fraud and conspiracy, alongside facing millions in legal fines.
The government is asking the federal court to force Shkreli to sell off all his pharmaceutical holdings, forfeit any profits earned from the trades as a financial penalty, and face penalties for potential future infractions. The court's ruling will determine whether Shkreli's online commentary and personal trading activity constitute a breach of his court-ordered industry ban.
Key points
- The FTC requested a federal court hold Martin Shkreli in contempt for allegedly violating a 2022 lifetime ban on pharmaceutical industry participation.
- Regulators allege Shkreli traded at least 60 pharmaceutical stocks and posted company analysis on platforms such as YouTube, X, and Reddit.
- Alleged trading activities include multiple trading challenges and shorting small biotech companies between 2022 and 2026.
- The agency seeks court orders forcing Shkreli to divest his pharma stock holdings and pay fines equal to his profits.
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How we writeDisclaimerQuestions and answers
Why is the FTC asking to hold Martin Shkreli in contempt?
The FTC claims Shkreli violated a 2022 court order banning him from the pharmaceutical industry by trading at least 60 pharma stocks and sharing opinions on companies across social media.
What penalties is the FTC seeking against Martin Shkreli?
Regulators are asking the court to force Shkreli to sell his pharmaceutical stocks, forfeit a fine equal to all profits made from those trades, and face consequences for future violations.
What was Martin Shkreli's original court order and industry ban?
In February 2022, Shkreli received a lifetime ban prohibiting him from directly or indirectly participating in the pharmaceutical industry or acquiring ownership interests in pharma firms.