FTC Targets Martin Shkreli Over Pharma Stock Trading and Market Commentary

3-line summary

• The FTC and seven US states filed a joint motion for contempt against Martin Shkreli, alleging he circumvented a court-ordered permanent ban on working in the pharmaceutical industry stemming from an antitrust case over Daraprim price-gouging, according to Investing.com. The motion targets his trading of pharmaceutical and healthcare stocks and public market commentary.
• Regulatory filings allege Shkreli acquired stakes in at least 60 pharmaceutical companies since his 2022 prison release, broadcast market strategies to retail investors across multiple digital platforms, demonstrated pharma stock trades in public livestreams, and ran short-selling campaigns targeting specific biotech firms ahead of clinical trial results, in violation of the Southern District of New York's permanent injunction.
• The FTC is seeking a show-cause order, civil penalties, forced divestment of all healthcare holdings, disgorgement of trading profits without offsetting losses, and escalating fines or incarceration for future violations. The motion was filed Tuesday, October 13; no court ruling had been issued as of the report.

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