WASHINGTON, D.C. — The Federal Trade Commission and a coalition of seven state attorneys general on Tuesday asked a New York federal judge to hold former biotech executive Martin Shkreli in contempt for allegedly breaching a lifetime industry ban that bars him from any involvement in pharmaceutical enterprises.

The lifetime prohibition, imposed in 2015 after Shkreli’s securities‑fraud conviction and a civil settlement with the FTC, forbids him from serving as an officer, director, or employee of any company that develops, markets, or distributes prescription drugs. The ban also bars equity ownership that confers control, a condition the FTC says Shkreli has ignored.

In its filing, the FTC alleges Shkreli “flagrantly and repeatedly” violated the order by consulting for a New York‑based biotech firm and holding a 5 percent stake in a start‑up that filed an FDA New Drug Application for a rare‑disease therapy. The coalition of states, representing roughly 10 percent of the U.S. population, seeks a $10 million civil penalty and an order that Shkreli cease all pharmaceutical activities immediately.

Clinical experts warn that such violations could affect patient access to essential medicines. The drug in question, an off‑label use of Daraprim, remains FDA‑approved but its price surged by 2,000 percent after Shkreli’s 2015 acquisition of Turing Pharmaceuticals. “When a sanctioned individual re‑enters the market, it risks destabilizing pricing and undermines trust in regulatory oversight,” said Dr. Elena Martinez, a health‑policy analyst at the University of Maryland.

Attorney General Letitia James of New York added, “These actions not only flout a court order but also jeopardize the safety of patients who rely on affordable, vetted treatments.” Legal scholars note that contempt of a lifetime ban can result in imprisonment of up to six months per violation, though the FTC has not yet specified the exact count of alleged infractions.

Key Takeaways

• Shkreli’s lifetime ban, issued in 2015, prohibits any pharmaceutical industry role or controlling equity stake.
• The FTC and seven states allege multiple breaches, seeking a $10 million penalty and contempt sanctions.
• Potential impacts include heightened drug‑price volatility and reduced patient confidence in FDA‑approved therapies.

The court’s decision, expected later this year, will determine whether Shkreli faces contempt penalties and could set a precedent for enforcing lifetime bans on individuals convicted of securities and pharmaceutical misconduct.