Attorney General Jason Miyares announced that a federal appeals court has upheld a court order that Virginia, the Federal Trade Commission (FTC), and six other states won against convicted criminal Martin Shkreli for engaging in illegal and monopolistic behavior as the CEO of Vyera Pharmaceuticals (previously known as Turing Pharmaceuticals).
The Court of Appeals for the Second Circuit affirmed the January 2022 decision of the District Court for the Southern District of New York, which found that Shkreli violated both federal and state laws by engaging in an illegal scheme to maintain a monopoly over a lifesaving drug, Daraprim, after increasing its price by over 4,000 percent. As a result, Shkreli is banned for life from the pharmaceutical industry and ordered to pay $64.6 million.
“Martin Shkreli’s actions weren’t just illegal - they were immoral. Dramatically overcharging for a lifesaving medication while actively preventing generic competition is taking advantage of individuals at their lowest, most desperate point. I’m pleased the Court agreed with us not once, but twice, and is holding him accountable,” said Attorney General Miyares.
In August 2015, Shkreli’s company, Vyera, acquired Daraprim and increased the price dramatically overnight from $17.50 per pill to $750 per pill, an over 4,000 percent increase. At the time of Shkreli’s scheme, Daraprim was the only FDA-approved drug for the treatment of toxoplasmosis, a parasitic disease that poses serious and often life-threating consequences for those with compromised immune systems, including babies born to women infected with the disease and individuals with the Human Immunodeficiency Virus (HIV). Vyera — under Shkreli’s control — then engaged in anticompetitive conduct to delay and impede generic competition. The high price and distribution changes Shkreli made limited access to the drug, forcing many patients and physicians to make difficult and risky decisions for the treatment of a life-threatening disease.
After a seven-day trial in December 2021, the District Court for the Southern District of New York issued a decision and order largely agreeing with the states and the FTC. The Court’s decision found Shkreli liable on each of the claims presented, banned him for life from participating in the pharmaceutical industry in any capacity, and ordered him to pay the plaintiff states $64.6 million in disgorgement. In addition, Vyera and Mulleady entered into an agreement that ended their illegal and monopolistic behavior, required the company to pay up to $40 million, and banned Mulleady from the pharmaceutical industry for seven years.
The decision by the Court of Appeals for the Second Circuit unanimously affirms the entirety of the Southern District’s decision. Citing “Shkreli’s pattern of past misconduct, the obvious likelihood of its recurrence, and the life-threatening nature of its results,” the Second Circuit determined that the Southern District acted properly by imposing its order against Shkreli.
Original source can be found here.