FTC Asks Judge to Hold “Pharma Bro” Martin Shkreli in Contempt

The US Federal Trade Commission (FTC) and seven states have asked a federal judge to hold Martin Shkreli in contempt of court, alleging that he violated a 2022 order barring him from the pharmaceutical industry.

Martin Shkreli faces a new legal challenge after US regulators alleged that he violated a court order barring him from the pharmaceutical industry. [Photo: PR Newswire]

The petition, filed on October 13, 2026, alleges that Shkreli repeatedly ignored the restrictions imposed by the court, according to United Press International (UPI).

Shkreli became known as “Pharma Bro” after raising the price of Daraprim, a drug used to treat the parasitic infection toxoplasmosis, from $17.50 to $750 per tablet while leading Turing Pharmaceuticals.

He was later convicted in a separate securities-fraud case. In 2022, a federal court imposed a lifetime ban on his participation in the pharmaceutical industry after finding that he had engaged in anticompetitive conduct involving Daraprim.

The ban was upheld on appeal.

The FTC and the states allege that Shkreli has violated the order by publicly trading stocks in at least 60 pharmaceutical companies and broadcasting his views on the businesses and management of pharmaceutical firms.

The regulators are asking the court to require him to divest pharmaceutical-company shares he currently owns and surrender profits from trading those stocks, along with applicable interest.

They have also requested escalating penalties for future violations, potentially including incarceration.

FTC officials said the court order was intended to prevent conduct that could undermine competition and harm consumers. The contempt petition remains an allegation for the court to consider; the filing does not mean a judge has already found Shkreli in contempt.