A federal appeals court in New York has upheld the lifetime ban imposed on Martin Shkreli from the pharmaceutical industry.
The 2nd U.S. Circuit Court of Appeals’ three-judge panel has deemed that Shkreli was appropriately penalized for his antitrust violations.
In 2015, Shkreli infamously hiked up the price of the antiparasitic drug Daraprim by a staggering 4,000%. This medication, often prescribed to HIV patients, saw its price skyrocket from $17.50 per pill to a staggering $750 per pill.
Martin Shkreli, once the CEO of a pharmaceutical company and famously known as “Pharma Bro,” has been found guilty of securities fraud. He had earned this notorious nickname after increasing the price of a crucial life-saving medication. Shkreli could have faced a maximum sentence of 20 years imprisonment for his actions.
In 2018, Shkreli faced legal consequences when he was found guilty of securities fraud and other offenses. As a result, he was sentenced to seven years in prison.
During his sentencing, Shkreli expressed remorse for his “disgraceful judgment” and refrained from criticizing the court or his conviction.
In a moment of candid reflection, he took full responsibility for his current situation, acknowledging that the fault lies entirely with himself. He dismissed any notion of a government conspiracy to bring him down, asserting that it was his own disgraceful and shameful actions that led to his downfall.
Shkreli was released from prison early in May 2022, after serving approximately five years.
Following a lawsuit filed by the Federal Trade Commission, he was ordered by the court to repay a whopping $64 million and was banned for life.
Shkreli contended that the lifetime ban imposed on him was overly severe and infringed upon his right to free speech. However, the appellate court deemed the ban to be a justified precautionary measure aimed at safeguarding the public against any potential instances of price-fixing in the future.
According to the opinion, the district court’s determination on the injunction’s proper scope was well within its discretion. This conclusion was reached based on Shkreli’s history of misconduct, the high probability of its recurrence, and the potentially life-threatening consequences it poses.
Vyera Pharmaceuticals, the company owned by Shkreli, reached a settlement on allegations of suppressing competition for their most valuable drug, Daraprim. The company subsequently filed for bankruptcy in the previous year.