The Federal Trade Commission (FTC) and seven states have taken legal action against Martin Shkreli, requesting a federal court to hold him in contempt for allegedly breaching a lifetime ban from the pharmaceutical industry. This motion follows Shkreli's release from prison in May 2022, during which he reportedly engaged in trading pharmaceutical stocks and publicly shared his views on the industry.

According to FTC officials, Shkreli's actions violate a 2022 court order that found him guilty of orchestrating an illegal scheme to maintain a monopoly on the drug Daraprim, significantly raising its price from $17.50 to $750 per tablet. The court deemed his conduct as egregious and dangerous, leading to the imposition of a lifetime ban and a requirement for him to pay over $64 million.

The joint motion outlines multiple instances where Shkreli allegedly disregarded the court's injunction by trading stocks of at least 60 pharmaceutical companies and sharing his trading strategies on social media platforms. The FTC emphasizes that such actions directly contravene the court's order, which prohibits him from influencing or controlling any pharmaceutical company.

In their filing, the FTC and the states are seeking civil sanctions against Shkreli, which could include requiring him to divest his pharmaceutical stocks, pay fines based on his trading profits, and face escalating penalties for any future violations. The Commission's vote to pursue this contempt action was unanimous, although FTC Chairman Andrew N. Ferguson recused himself from the decision.