Summary
The U.S. Supreme Court has declined to hear Martin Shkreli’s appeal against a $64.6 million penalty imposed due to his controversial price hike of the lifesaving drug Daraprim. The penalty was upheld by lower courts, which cited Shkreli’s monopolistic practices and “heartless” tactics in the pharmaceutical industry.
In 2015, Shkreli, then CEO of Turing Pharmaceuticals, raised the price of Daraprim from $17.50 to $750 per tablet, sparking widespread outrage. In 2022, U.S. District Judge Denise Cote imposed the financial penalty to reflect the profits he made from this price increase, along with a lifetime ban from the drug industry. Shkreli’s legal team argued that the penalty was unfair, claiming he should not be liable for profits he did not personally receive. Despite the Supreme Court’s refusal to review the case, Shkreli’s lawyer expressed hope that future legal precedents might allow for another challenge to the penalty.
Background on Shkreli’s Legal Issues
Shkreli gained notoriety in the pharmaceutical industry for his aggressive pricing strategies and was subsequently convicted in 2017 for defrauding investors in hedge funds. His actions have led to significant legal repercussions, including the recent penalties stemming from a civil antitrust case brought by the Federal Trade Commission and several states. Following his release from prison in May 2022, Shkreli has transitioned to work as a software developer and legal consultant, while also facing additional legal challenges, including a lawsuit from the digital art collective PleasrDAO over a Wu-Tang Clan album.
Implications of the Supreme Court’s Decision
The Supreme Court’s decision not to hear Shkreli’s appeal leaves the $64.6 million penalty in place, reinforcing the lower courts’ stance on accountability in the pharmaceutical industry. The ruling highlights ongoing concerns about pricing practices and market monopolization within the sector, especially regarding access to essential medications like Daraprim, which is used to treat toxoplasmosis in vulnerable populations, including those with AIDS.
Supreme Court rejects ‘Pharma Bro’ Martin Shkreli’s appeal of $65M in penalties
Oct. 7 / New York Post / Offers a succinct overview of Shkreli's legal battles and the Supreme Court's decision, but lacks depth compared to other sources, making it less informative for readers seeking a comprehensive understanding of the case. “ The US Supreme Court declined on Monday to hear former pharmaceutical company CEO Martin Shkreli’s challenge to a $64.6 million financial penalty imposed by...
US Supreme Court rejects ex-pharma CEO Martin Shkreli's appeal
Oct. 7 / Gazette / Highlights the Supreme Court's refusal to hear Shkreli's appeal, providing essential details on the legal context and implications of the ruling, while emphasizing Judge Cote's strong condemnation of his actions. “ By Jonathan Stempel (Reuters) - The U.S. Supreme Court declined on Monday to hear former pharmaceutical company CEO Martin Shkreli's challenge to a $64.6...