U.S. regulators and a coalition of seven states have asked a federal judge to hold Martin Shkreli in contempt for repeatedly violating a court order that prohibits him from participating in the pharmaceutical industry. The request follows allegations that Shkreli has been publicly trading stocks in more than 60 pharmaceutical companies and sharing his views on their business on social media, despite a lifetime ban issued by the court in 2022.

The Federal Trade Commission (FTC) and the state attorneys general contend that Shkreli’s activities breach a 2022 ruling by U.S. District Judge Denise Cote. The court had found Shkreli liable for an anti-competitive scheme involving Daraprim, a drug used to treat toxoplasmosis, a potentially fatal parasitic infection. Under Shkreli’s leadership at Vyera Pharmaceuticals, the price of Daraprim was raised from $17.50 to $750 per tablet, a move that the court said suppressed generic competition and harmed patients.

Following the ruling, Shkreli was permanently banned from participating in the pharmaceutical sector. However, court filings allege that he has undermined this order by trading pharmaceutical stocks, including shares in companies such as Pfizer, Moderna, Eli Lilly, and Novo Nordisk, and by publicly commenting on their market prospects. Regulators highlight that Shkreli has actively encouraged investors to short certain stocks and has used social media platforms, including livestreams, to discuss his trading activities.

Daniel Guarnera, director of the FTC’s Bureau of Competition, stated that the enforcement action is intended as a warning that the commission will rigorously uphold court orders. He emphasized that defendants must comply fully with judicial judgments, whether entered as settlements or after trials. New York Attorney General Letitia James, who joined the FTC and six other states in seeking sanctions, urged the court to impose penalties including a full accounting of Shkreli’s pharmaceutical stock trades, divestment of any holdings, and fines equivalent to any profits derived.

The FTC’s civil contempt case is proceeding without the involvement of FTC Chair Andrew Ferguson, who recused himself. Commissioner Mark Meador supported the move, noting that a lifetime ban requires meaningful consequences when violated.

Shkreli, who gained notoriety in 2015 for the dramatic price increase of Daraprim at Turing Pharmaceuticals and was convicted in 2017 for securities fraud and conspiracy related to another drug company, has not responded to requests for comment. Following his release from prison in 2022, court documents indicate that Shkreli adopted a highly visible, provocative presence on social media, even referring to himself as “the GOAT of binary events” and boasting of significant stock trading profits.

The ongoing legal action aims to reinforce the original court order’s authority and prevent further market manipulation that regulators say puts investors and public health at risk.