US Court Upholds Pharma CEO Martin Shkreli's Ban

Facts

• The 2nd US Circuit Court of Appeals on Tuesday upheld Martin Shkreli's lifetime ban from the pharmaceutical industry, ruling the former CEO of Vyera Pharmaceuticals had been rightly punished for antitrust violations.¹
• Shkreli, who became famed for raising the price of the antiparasitic drug Daraprim from $17.50 per tablet to $750 overnight in 2015, served over four years in prison following his 2017 securities fraud conviction.²
• The Southern District Court of New York banned him from the business for life in January 2022 and ordered him to pay $64.6M in disgorgement to the states impacted by Vyera's decisions.³
• In its ruling — delivered after the Federal Trade Commission and several states filed lawsuits in 2020 — the District Court found that Shkreli and his companies' practices had prevented generic competition, enabling them to protect Daraprim's price increase.⁴
• However, Shkreli's attorney claims his sanctions 'go well beyond established legal limits' and suggest he may file another appeal. Shkreli was released from prison in May 2022.⁵
• New York Attorney General Letitia James, who, along with the FTC and six states, had sued Shkreli, said Shkreli's ban supports her bid to permanently ban former Pres. Donald Trump from New York's real estate industry.⁶

Sources: ¹ABC News, ²Guardian, ³Daily Caller, ⁴Federal Trade Commission, ⁵New York Post and ⁶CNBC.

Narratives

• Pro-establishment narrative, as provided by Forbes. Having infamously raised the cost of a life-saving drug by about 5000%, this latest ruling is absolutely justified. Shkreli exemplifies the kind of greed and inhumanity that plagues the pharmaceutical industry and ultimately, comes to cost the taxpayer. This is a great example of a corporate executive being rightfully held accountable for anticompetitive conduct.
• Establishment-critical narrative, as provided by New Yorker. Criticism of Shkreli alone misses the egregious reality behind the decisions made at Vyera Pharmaceuticals. Emphasis on individual responsibility can only go so far — the American people should be looking more closely at the fact that anticompetitive and monopolizing moves were possible at all under the current system. At the very least, in a political landscape that rewards supposedly anti-establishment figures, Shkreli is candid in his motivation to exploit failures of the US medical industry.
• Anti-Trump narrative, as provided by Newsweek. The federal appeals court in New York has made the right decision upholding Martin Shkreli's permanent ban from the pharmaceutical industry. However, the more interesting aspect of the decision is how it impacts Letitia James' case against Donald Trump. The Shkreli ban shows that serial criminals who defraud consumers and investors can be brought to justice — Trump certainly fits that criterion.
• Pro-Trump narrative, as provided by TheHill. While the courts can point to Martin Shkreli's infractions, it's ridiculous to imply that Donald Trump could be subjected to a similar ban from New York's real estate industry. Shkreli was a convicted criminal who served several years in prison; however, Trump's only crime is challenging the Democratic establishment. Letitia James is grasping at straws, and her arguments keep getting weaker.