FTC and seven states ask federal court to hold Martin Shkreli in contempt over alleged violations of lifetime pharma industry ban

The Federal Trade Commission and a coalition of seven states asked a federal court in New York to punish Martin Shkreli for allegedly violating a lifetime ban barring him from involvement in the pharmaceutical industry. In a filing made in U.S. District Court for the Southern District of New York on Tuesday, the agencies argued that Shkreli continued to engage in conduct that the lifetime restriction was designed to prevent, and urged the court to hold him in contempt.

According to the request described by The Hill, the FTC characterized Shkreli’s alleged conduct as “flagrantly and repeatedly” violating the lifetime industry ban. The filing asked the court to impose contempt sanctions, setting up a dispute over whether Shkreli’s actions after the ban took effect breached the terms of the order and whether judicial enforcement is warranted.

The coalition filing was brought by the FTC alongside seven states, The Hill reported. The action reflects the federal government’s and states’ efforts to secure compliance with pharmaceutical-industry restrictions imposed through enforcement proceedings, using contempt as a mechanism for court-ordered remedies when a party is alleged to have disregarded an injunction or similar directive.

The case is pending in the Southern District of New York, where the court will evaluate the agencies’ request. The contempt step is procedural and depends on the court’s determination of the factual record regarding what Shkreli did after the lifetime ban, and whether those actions fall within the scope of the prohibition the court previously imposed.

The dispute also highlights how industry restrictions enforced by the FTC and states can become recurring litigation rather than a one-time outcome. If the court finds the alleged violations sufficiently established, the agencies are seeking to use contempt authority to compel compliance and to address harm tied to ongoing noncompliance with the lifetime ban.

The filing described by The Hill tees up further proceedings in which Shkreli would have an opportunity to respond to the allegations and arguments presented by the FTC and the states. A ruling would determine whether the lifetime ban will be enforced through contempt sanctions and what form those sanctions, if any, may take.