Attorney General James Releases Statement on U.S. Supreme Court Decision Not to Hear Appeal by ‘Pharma Bro’ Martin Shkreli

October 7, 2024

NEW YORK - New York Attorney General Letitia James issued the following statement on the United States Supreme Court's decision not to hear an appeal from convicted criminal Martin Shkreli, leaving in place a lower court ruling banning Shkreli for life from the pharmaceutical industry and ordering him to pay $64.6 million in disgorgement. The January 2022 decision of the District Court for the Southern District of New York, which was previously upheld by the Court of Appeals for the Second Circuit, was the result of actions taken by Attorney General James, utilizing New York Executive Law Section 63(12) and the state's antitrust laws, as well as the Federal Trade Commission (FTC), and six other states, against Shkreli for engaging in illegal and monopolistic behavior as the CEO of Vyera Pharmaceuticals (previously known as Turing Pharmaceuticals):

"Martin Shkreli tried to profit off of vulnerable people by jacking up lifesaving medicine to ludicrous prices and preventing cheaper generic drugs from launching. His selfishness had consequences, and that is why I joined with the FTC and my fellow attorneys general to hold Shkreli accountable and to stop his outrageous actions. This win reinforces how our state's tough anti-fraud laws help protect New Yorkers and ensure bad actors cannot abuse their power, wealth, or influence."

In August 2015, Shkreli's company, Vyera, acquired Daraprim and increased the price dramatically overnight from $17.50 per pill to $750 per pill, an over 4,000 percent increase. At the time of this scheme, Daraprim was the only FDA-approved drug for the treatment of toxoplasmosis, a parasitic disease that poses serious and often life-threating consequences for those with compromised immune systems, including babies born to women infected with the disease and individuals with the Human Immunodeficiency Virus (HIV). Vyera - under Shkreli's control - then engaged in anticompetitive conduct to delay and impede generic competition. The high price and distribution changes Shkreli made limited access to the drug, forcing many patients and physicians to make difficult and risky decisions for the treatment of a life-threatening disease.

In January 2020, Attorney General James and FTC filed a lawsuit against Vyera, Shkreli, and his business partner, Kevin Mulleady, for anticompetitive behavior that allowed the defendants to charge an exorbitantly high price for Daraprim. In April 2020, the states of California, Illinois, North Carolina, Ohio, Pennsylvania, and Virginia joined Attorney General James' and FTC's lawsuit. After a seven-day trial in December 2021, the District Court for the Southern District of New York issued a decision and order largely agreeing with the states and FTC. The Court's decision found Shkreli liable on each of the claims presented, banned him for life from participating in the pharmaceutical industry in any capacity, and ordered him to pay the plaintiff states $64.6 million in disgorgement. In addition, Vyera and Mulleady entered into an agreement that ended their illegal and monopolistic behavior, required the company to pay up to $40 million, and banned Mulleady from the pharmaceutical industry for seven years.

The decision by the United States Supreme Court declining to hear the appeal means that the district court's judgment stands and is final.

Attorney General James wishes to thank the staff and leadership at FTC for their partnership in this important matter, as well as the assistance of the staff and leadership of its co-plaintiff states: California, Illinois, North Carolina, Ohio, Pennsylvania, and Virginia.

The appeal in this matter was handled for the Office of the Attorney General (OAG) by Senior Assistant Solicitor General Philip Levitz, Deputy Solicitor General Judith N. Vale, and Solicitor General Barbara D. Underwood, all of the Division of Appeals and Opinions. The OAG's litigation in the district court was handled by Assistant Attorneys General Saami Zain and Jeremy Kasha, Senior Enforcement Counsel Bryan Bloom, Deputy Bureau Chief Amy McFarlane, Bureau Chief Elinor R. Hoffmann, and Legal Assistant Arlene Leventhal - all of the Antitrust Bureau. The Antitrust Bureau is a part of the Division for Economic Justice, which is overseen by Chief Deputy Attorney General Chris D'Angelo and First Deputy Attorney General Jennifer Levy.