Pharmaceutical Executive’s Appeal Rejected by Supreme Court
In a major blow to Martin Shkreli, the notorious “pharma bro,” the Supreme Court has denied his appeal to overturn a $64 million financial penalty imposed on him for violating antitrust laws. Shkreli, who gained notoriety in 2015 for drastically increasing the price of a lifesaving drug, Daraprim, had sought to appeal the penalty, arguing that it was excessive and unfair.
The Supreme Court’s decision not to hear Shkreli’s appeal means that the $64 million penalty, imposed by a federal court in 2022, will stand. The penalty was part of a broader ruling that banned Shkreli from the pharmaceutical industry for life and ordered him to disgorge profits earned from raising Daraprim’s price.
Shkreli’s legal team had argued that the penalty was unjust because it was based on profits earned by his corporate co-defendants, rather than by Shkreli himself. They claimed that this approach conflicted with rulings by other federal appeals courts, which limit a defendant’s liability to their personal gain from wrongdoing.
However, the Supreme Court rejected Shkreli’s appeal without explanation, leaving the $64 million penalty intact. The decision is a significant victory for the Federal Trade Commission (FTC), which had sued Shkreli and his company, Vyera Pharmaceuticals, for allegedly illegally blocking competition to Daraprim.
The FTC had alleged that Shkreli’s actions cost consumers tens of millions of dollars every year, and that his company had engaged in anticompetitive behavior to maintain its monopoly on the drug. The agency welcomed the Supreme Court’s decision, saying that it would help to protect consumers from unfair business practices.
Shkreli’s legal team has vowed to continue fighting the penalty, arguing that it is excessive and unfair. However, the Supreme Court’s decision marks a significant setback for Shkreli, who has become synonymous with corporate greed and price-gouging.
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