A federal appeals court upheld a lifetime pharmaceutical industry ban against businessman Martin Shkreli on Tuesday.
The Second U.S. Circuit Court of Appeals upheld a ruling on the “Pharma Bro” from a district court, ordering him to be barred from participating in the pharmaceutical industry and finding him liable for nearly $65 million “in disgorgement for his role in orchestrating an illegal anticompetitive scheme.”
“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 anticompetitive actions that they help orchestrate,” Federal Trade Commission Bureau of Competition Director Henry Liu said in a press release.
About two years ago, U.S. District Judge Denise Cote ordered Shkreli to pay nearly $65 million and to stay out of the pharmaceutical industry for his role in substantially raising the price of an AIDS medication.
“He cynically took advantage of the requirements of a federal regulatory scheme designed to protect the health of a nation by ensuring that its population has access to drugs that are not only effective but also safe,” Cote said in her decision.
“He recklessly disregarded the health of a particularly vulnerable population, those with compromised immune systems. His scheme burdened those patients, their loved ones, and their health care providers,” she continued.
Cole also said that the former CEO of Turing Pharmaceuticals hadn’t expressed regret for what he had done and that “the risk of recurrence here is real.”
“Shkreli’s anticompetitive conduct at the expense of the public health was flagrant and reckless. He is unrepentant. Barring him from the opportunity to repeat that conduct is nothing if not in the interest of justice,” Cote said.
