Victims of Price Gouging Finally Vindicated

Victims of Price Gouging Finally Vindicated

(WatchDogReport.org) – Martin “Pharma Bro” Shkreli is perhaps one of the most infamous pharma executives in the last decade. He’s known for increasing the price of the life-saving drug, Daraprim, from $13.50 to $750 a pill. The Federal Trade Commission (FTC) has now shut down the scheme and announced a settlement, more than six years after the scandal broke.

On December 7, the FTC announced the federal agency along with California, New York, North Carolina, Illinois, Ohio, Virginia, and Pennsylvania, filed a court order that shut down the illegal scheme. According to the statement, the agency claims Shkreli and his associate Kevin Mulleady violated antitrust laws by hiking the price of the medicine by 4,000% before blocking other companies from developing a cheaper alternative.

Shkreli’s and Mulleady’s company, Vyera Pharmaceuticals, LLC, and its parent company Phoenixus AG, will pay up to $40 million. The companies will pay $10 million upfront, and the other $30 million will be paid out over 10 years.

In addition to the monetary settlement, Mulleady is banned from the pharmaceutical industry for the next seven years. If he violates the order, he will have to pay $250,000. Shkreli is currently serving a seven-year sentence in federal prison on an unrelated charge.

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