WASHINGTON, D.C. — The Federal Trade Commission and seven state attorneys general filed a motion Tuesday in Manhattan federal court seeking a contempt order against former biotech executive Martin Shkreli, alleging he has repeatedly breached a lifetime prohibition on participating in the pharmaceutical industry.

The motion alleges that since his release from federal prison in May 2022, the 43‑year‑old has bought and sold securities in at least 60 pharmaceutical companies and has publicly commented on their business strategies, actions the FTC says are prohibited by the 2022 settlement that bars him from any ownership stakes or decision‑making role in the sector.

“Willful violations of a court‑ordered injunction undermine the integrity of our regulatory framework and erode public confidence in the pharmaceutical marketplace,” FTC Chair Lina Khan said in a statement. “We are asking the court to hold Mr. Shkreli accountable and to send a clear message that such conduct will not be tolerated.”

Enterprise compliance teams across the industry are watching the case closely. The allegations highlight how former executives can influence market dynamics through stock trades and public statements, prompting firms to tighten internal monitoring of former employees and to reinforce whistle‑blower protocols to avoid inadvertent association with prohibited activities.

State Attorney General Letitia James of New York added, “When a high‑profile figure flouts a lifetime ban, it threatens fair competition and could give an unfair advantage to the companies he trades.” The filing notes that Shkreli’s alleged activities span multiple jurisdictions, potentially affecting market valuation for dozens of biotech firms.

The contempt request could result in civil penalties of up to $1 million per violation, along with an order barring Shkreli from any future involvement in pharmaceutical enterprises, underscoring the regulators’ resolve to enforce the settlement and protect competitive integrity.

Key Takeaways

• FTC and seven states seek a contempt order for alleged violations of a lifetime pharma‑industry ban.
• Shkreli is accused of trading stocks in at least 60 pharmaceutical companies since May 2022.
• Potential penalties include up to $1 million per violation and a reinforced industry‑wide compliance focus.

The outcome of the motion will likely shape how regulators monitor former industry insiders and could set a precedent for enforcement actions aimed at preserving competitive fairness in the biotech sector.