New York Attorney General Letitia James has responded to the United States Supreme Court's decision not to hear an appeal from Martin Shkreli. This decision leaves in place a lower court ruling that bans Shkreli for life from the pharmaceutical industry and orders him to pay $64.6 million in disgorgement.
The January 2022 ruling by the District Court for the Southern District of New York, which was upheld by the Court of Appeals for the Second Circuit, resulted from actions taken by Attorney General James. These actions utilized New York Executive Law Section 63(12), state antitrust laws, and involved collaboration with the Federal Trade Commission (FTC) and six other states against Shkreli. The case addressed his illegal and monopolistic behavior as CEO of Vyera Pharmaceuticals, formerly Turing Pharmaceuticals.
"Martin Shkreli tried to profit off of vulnerable people by jacking up lifesaving medicine to ludicrous prices and preventing cheaper generic drugs from launching," said Attorney General James. "His selfishness had consequences, and that is why I joined with the FTC and my fellow attorneys general to hold Shkreli accountable and to stop his outrageous actions."
In August 2015, Vyera acquired Daraprim and raised its price overnight from $17.50 per pill to $750 per pill, marking an over 4,000 percent increase. At that time, Daraprim was the only FDA-approved drug for treating toxoplasmosis, a parasitic disease posing serious risks for those with compromised immune systems. Under Shkreli’s control, Vyera engaged in anticompetitive conduct to delay generic competition.
In January 2020, Attorney General James and FTC filed a lawsuit against Vyera, Shkreli, and business partner Kevin Mulleady for their anticompetitive behavior regarding Daraprim pricing. By April 2020, California, Illinois, North Carolina, Ohio, Pennsylvania, and Virginia joined this lawsuit. Following a seven-day trial in December 2021, the District Court found Shkreli liable on all claims presented.
The court banned him from participating in the pharmaceutical industry for life and ordered him to pay $64.6 million in disgorgement. Additionally, Vyera and Mulleady agreed to end their monopolistic practices; they are required to pay up to $40 million while Mulleady faces a seven-year ban from the industry.
Attorney General James expressed gratitude towards FTC staff leadership as well as her co-plaintiff states: California, Illinois, North Carolina, Ohio, Pennsylvania, and Virginia.
The appeal was managed by Senior Assistant Solicitor General Philip Levitz along with Deputy Solicitor General Judith N. Vale under Solicitor General Barbara D. Underwood’s guidance within OAG’s Division of Appeals & Opinions; district court litigation involved Assistant Attorneys Generals Saami Zain & Jeremy Kasha alongside Senior Enforcement Counsel Bryan Bloom among others within Antitrust Bureau overseen by Chief Deputy Attorney Chris D’Angelo & First Deputy Jennifer Levy at Division Economic Justice level