The U.S. Court of Appeals for the 2nd Circuit on Tuesday upheld a lifetime ban against “Pharma Bro” Martin Shkreli to work in pharmaceuticals.
The ban came after he hiked the price of Daraprim, which treats a parasitic disease that strikes those with pregnancy, cancer and AIDS, from $17.50 to $750 a pill in 2015.
In February 2022, the U.S. District Court for the Southern District of New York found that Shkreli and his company illegally created anti-competitive restrictions for the drug, with the court issuing the lifetime ban. The appellate court said the ban was reasonable punishment to protect the public from his price-fixing.
In addition to being banned from working in the industry, Shkreli, who served part of a seven-year sentence for defrauding investors before being released in May 2022, must pay $64.6 million to the states affected by his company’s decisions.
In his appeal, Shkreli argued that banning him from working in pharmaceuticals for life was an unconstitutional violation of his free speech, according to court documents.
The court of appeals found that unpersuasive.
Shkreli’s attorney, Kimo Peluso, says further appeals may be forthcoming.
“The monetary and injunctive awards imposed on Mr. Shkreli go well beyond established legal limits,” Mr. Peluso told Bloomberg.
The Federal Trade Commission, which asked for Shkreli to be held in contempt of court in January for failing to abide by the 2022 order, applauded the decision of the appeals court.
“The Second Circuit’s decision is a win for consumers seeking affordable, lifesaving medication and clearly demonstrates that corporate executives will be held personally liable for anti-competitive actions that they help orchestrate,” the FTC’s Bureau of Competition director, Henry Liu, said in a statement.
• Brad Matthews can be reached at bmatthews@washingtontimes.com.
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