FTC and States Seek Contempt Finding Against Shkreli

The Federal Trade Commission and seven states have asked a federal judge to hold Martin Shkreli in contempt, alleging he violated a lifetime ban on participating in the pharmaceutical industry by trading related stocks and discussing companies publicly. The allegations have not been ruled on by the court. The regulators filed their request Tuesday with U.S. District Judge Denise Cote, who imposed the ban in 2022. They say Shkreli’s stock trading and online commentary about pharmaceutical companies breached the injunction. The filing points to posts and livestreams on platforms including YouTube, X and Reddit, and argues his public activity may represent only part of his trading. The FTC and states are seeking an order requiring Shkreli to explain why he should not be held in civil contempt. They also ask the court to require him to sell any pharmaceutical holdings and surrender profits from the alleged trades. Their requested remedies include additional sanctions to deter future violations, potentially including fines or incarceration. These are requests by the regulators, not penalties the court has imposed.