NY, feds sue ‘Pharma Bro’ for ‘scheme’ to keep drug price up

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Martin Shkreli

FILE – In this Aug. 4, 2017, file photo, Martin Shkreli leaves federal court in New York while on trial for deceiving investors in a pair of failed hedge funds. On Monday, Jan. 27, 2020, New York state and federal authorities sued the imprisoned Shkreli, also known as “Pharma Bro,” over business tactics that helped make him the bad-boy face of profiteering in pharmaceuticals, seeking to bar him from the industry for life. (AP Photo/Seth Wenig, File)

NEW YORK (AP) – State and federal authorities are suing imprisoned drug entrepreneur Martin Shkreli over tactics that shielded a profitable drug from competition after a price hike made the so-called “Pharma Bro” infamous. 

New York Attorney General Letitia James and the Federal Trade Commission filed suit Monday. Shkreli was scorned as the bad-boy face of pharmaceuticals profiteering after he engineered a roughly 4,000-percent increase in the price of a long-existing medication for a sometimes life-threatening parasitic infection.

Monday’s lawsuit centers on subsequent actions by Shkreli and his former company. His lawyer, Benjamin Brafman, calls the suit a baseless and says Shkreli looks forward to defeating it.

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