Supreme Court Declines Martin Shkreli’s Appeal on $64.6 Million Penalty
WASHINGTON – The Supreme Court has denied an appeal from Martin Shkreli, previously known as “Pharma Bro,” regarding the forfeiture of $64.6 million in profits linked to his controversial price hikes on a crucial medication.
Shkreli contested a ruling requiring him to return the profits generated by his former company after it secured a monopoly on the medication and significantly raised its cost. His defense team claimed that the earnings were accrued by the company, not Shkreli personally.
The justices did not provide an explanation for their decision, which is standard practice in such cases, and no dissenting opinions were recorded.
Prosecutors highlighted that the company had settled with a payment of $40 million, asserting that Shkreli should be held accountable for the profits due to his role in orchestrating the pricing strategy.
Additionally, Shkreli was instructed to forfeit a unique album from the Wu-Tang Clan, titled "Once Upon a Time in Shaolin," recognized as the world’s rarest musical album. The album was auctioned in 2015 with the stipulation that it would not be commercially exploited.
Shkreli was found guilty of deceiving investors, resulting in significant financial losses linked to two unsuccessful hedge funds he ran. As CEO of Turing Pharmaceuticals, he controversially raised the price of Daraprim from $13.50 to $750 per pill after obtaining exclusive rights to the drug in 2015. This medication is essential for treating a rare parasitic disease that affects pregnant women, cancer patients, and those with AIDS.
In defense of his actions, Shkreli described the price increase as a manifestation of free-market dynamics, arguing that insurance and other assistance programs would allow those in need to access Daraprim. However, this stance triggered widespread condemnation across the healthcare sector and Congress.
Attorney Thomas Huff expressed disappointment over the Supreme Court’s ruling but noted potential for the high court to reconsider a lower court decision that justified the $64 million penalty despite Shkreli not personally receiving the funds.
“If and when the Supreme Court does so, Mr. Shkreli will have a strong argument for modifying the order accordingly,” Huff stated.
Shkreli was released from prison in 2022 after serving a substantial portion of his seven-year sentence.
