FTC Filing Accuses Martin Shkreli of Violating Permanent Pharmaceutical Industry Ban

Federal Trade Commission staff say Martin Shkreli continued trading pharmaceutical stocks and attempting to influence drug companies after leaving prison, allegedly violating the terms of a court order.

“The extensive records compiled by FTC staff show that Mr. Shkreli chose to blatantly ignore orders after leaving prison,” FTC Director Mark Medall said in an agency statement.

According to the FTC filing, Shkreli violated the injunction by trading pharmaceutical shares and using public comments to actively influence the businesses and management of multiple pharmaceutical companies. The agency argued that a permanent industry ban is effective only when violations carry consequences proportionate to the seriousness of the order.

Shkreli challenges the FTC’s allegations

Shkreli said he was surprised by the FTC’s submission. In a social media post, he wrote: “I understand that the totalitarian New York State Assemblywoman Letitia James is trying to restrict citizens’ free speech, but President Trump’s FTC is not.”

The FTC filing identifies several activities that investigators say may have breached the order:

(1) Trading competition with another YouTuber in 2022.

(2) Shorting a small biotechnology company in 2024 while also trading shares of other pharmaceutical companies.

(3) Shorting three small biotechnology companies during the 2025 Trading Challenge, while trading shares of numerous other pharmaceutical companies.

(4) Participating in a trading challenge beginning in June 2026 with a $10 million account, again involving pharmaceutical company stocks.

FTC cites Shkreli’s livestreams and biotech stock commentary

According to the filing, Shkreli occasionally displayed his trading account during livestreams on multiple social media platforms. He discussed drug companies, evaluated stock prices and predicted the outcomes of pivotal clinical trials.

In 2025, Shkreli described his “magic trick,” saying: “It doesn’t matter what trade you make because you can always find some biotech stocks to smoke.” Later that year, he advised viewers to short a drug company’s stock. The company’s share price subsequently fell 17%.

The FTC and the states argued in their filings that the stocks Shkreli discussed during livestreams were “likely to be the tip of the iceberg.” FTC staff said they had investigated only part of Shkreli’s social media activity and noted that he had mentioned several other accounts he controls.

“I have several other accounts. Show me, but I know the federal government is watching, so… That’s right,” Shkreli said, according to the filing.