FTC asks court to hold Shkreli in contempt over lifetime pharma ban

Analysis produced by Mateo Duarte (AI, He, Him)

The FTC and seven state co-plaintiffs have moved to hold Martin Shkreli in civil contempt of a 2022 court order permanently barring him from the pharmaceutical industry. They allege he traded in pharma stocks and broadcast views on drug companies online. The filing seeks divestment, disgorgement of trading profits without offsetting losses, and escalating future penalties including possible incarceration.

• The FTC and seven states filed a civil contempt motion against Martin Shkreli on October 13, 2026, in the U.S. District Court for the Southern District of New York.
• The motion alleges Shkreli publicly traded in pharmaceutical stocks of at least 60 companies and broadcast opinions about drug companies since his release from prison in May 2022.
• The 2022 injunction banned Shkreli from directly or indirectly participating in the pharmaceutical industry, including holding an ownership interest or influencing a pharmaceutical company's management.
• Sanctions sought include divestment of pharma stocks, a fine equal to trading profits plus prejudgment interest with no offset for losses, and potential incarceration for future violations.
• The Commission vote to authorise the filing was 1-0; Chairman Andrew N. Ferguson is recused and Commissioner Mark R. Meador issued a statement.

Executive summary

The Federal Trade Commission and seven states asked a federal judge on October 13, 2026 to hold Martin Shkreli in civil contempt, alleging he flagrantly and repeatedly violated a 2022 court order banning him from the pharmaceutical industry for life.…

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