In a pivotal decision, the Second Circuit reaffirmed on Tuesday the lifetime ban on former pharmaceutical tycoon and convicted securities fraudster Martin Shkreli from the drug industry, emphasizing the potential “life-threatening” consequences of a recurrence of his past misconduct.
2nd Circ Backs Shkreli Lifetime Pharma Industry Ban : Judicial Backing for a Critical Injunction
A three-judge panel from the Second Circuit threw its weight behind a New York federal court’s permanent injunction that prohibits Shkreli from ever participating in the pharmaceutical industry. The ruling stems from Shkreli’s notorious illegal scheme, which saw him skyrocket the price of a crucial lifesaving drug by a staggering 4,000%, simultaneously obstructing generic competitors.
The panel, which also endorsed the hefty $64.6 million disgorgement order against Shkreli, asserted that the ban serves as a necessary measure to shield the public from the imminent threat of further anti-competitive behavior.
2nd Circ Backs Shkreli Lifetime Pharma Industry Ban : Shkreli’s Notorious Infamy Unveiled
Shkreli’s notoriety originated from his role as the CEO of Turing Pharmaceuticals, now rebranded as Vyera Pharmaceuticals, where he orchestrated the exorbitant price hike of the antiparasitic drug Daraprim. Convicted in 2018 on unrelated charges, including defrauding investors and manipulating biotech company Retrophin Inc.’s stock prices, Shkreli served seven years in prison, securing an early release in 2022.
Appeal Rejected, First Amendment Claims Dismissed
Shkreli’s challenge against the industry ban in an appeal, following a civil antitrust case brought by the Federal Trade Commission and seven states, faced a resounding defeat. The panel justified its decision, citing Shkreli’s historical pattern of misconduct, the foreseeable likelihood of its recurrence, and the potentially life-threatening outcomes.
