The Court of Appeals for the Second Circuit affirmed the ruling of the District Court for the Southern District of New York and found “Pharma Bro” Martin Shkreli guilty of violating federal and state laws by monopolistically jacking up the price of a life-saving drug.
While people needlessly died, Shkreli was found to have increased the price of Daraprim, a crucial treatment for toxoplasmosis, by more than 4,000 percent. Shkreli is now permanently banned from the pharmaceutical industry and must pay $64.6 million.
“For years, Martin Shkreli and his company made millions by putting vulnerable people at great risk and denying lifesaving medication,” said Attorney General Letitia James. “Our latest victory once again holds him accountable. New Yorkers can rest assured that I will always take action against those who put their personal profits over people’s health.”
Shkreli’s company acquired Daraprim in August 2015, subsequently raising its price from $17.50 to $750 per pill. This increase posed a dire threat to patients with compromised immune systems, including those with HIV and newborns.
Under Shkreli’s direction, Vyera then engaged in strategies to delay generic competition, severely limiting drug access and forcing patients and physicians into precarious health decisions.
In January 2020, a joint lawsuit was filed against Vyera, Shkreli, and his business partner, Kevin Mulleady, by Attorney General James and the FTC for their anticompetitive behavior. This lawsuit was later joined by several states.
After a seven-day trial in December 2021, the District Court largely agreed with the FTC and the states, leading to Shkreli’s lifetime ban from the pharmaceutical industry and the hefty financial penalty.
The recent unanimous decision by the Court of Appeals for the Second Circuit affirmed the Southern District’s decision. The court cited Shkreli’s history of misconduct and the potentially life-threatening consequences of his actions as justification for the stringent penalties.
