💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

From prison, 'Pharma Bro' Martin Shkreli sues ex-colleagues for $30 million

Published 05/31/2019, 05:42 PM
Updated 05/31/2019, 05:45 PM
© Reuters. FILE PHOTO: Former drug company executive Martin Shkreli exits U.S. District Court after being convicted of securities fraud, in the Brooklyn borough of New York City
SO
-

By Jonathan Stempel

NEW YORK (Reuters) - Martin Shkreli, the pharmaceutical entrepreneur serving a seven-year prison term for fraud, on Friday sued three former colleagues at Retrophin Inc for more than $30 million, saying they illegally ousted him from that company in 2014.

In a complaint filed in Manhattan federal court, Shkreli said Stephen Aselage, Margaret Valeur-Jensen and Gary Lyons fraudulently induced him to negotiate his exit from Retrophin, only to then "trick him" into signing away his rights as chief executive and founder without receiving anything in return.

Shkreli said the defendants were "driven by their egos, jealousy, and greed," and that Aselage and Valeur-Jensen then "paid themselves" more than $35 million from assets he created.

Aselage is a director of Retrophin, where he also served as chief executive after Shkreli left, while Lyons is Retrophin's chairman. Valeur-Jensen is a lawyer who became the San Diego-based company's general counsel after Shkreli's departure.

Retrophin was not named as a defendant. The company, through an outside spokesman, declined to comment on the lawsuit or on the defendants' behalf. The defendants could not immediately be reached for comment. Shkreli's lawyer, Edward Kang, declined to answer questions about the lawsuit.

Shkreli said his damages estimate reflects compensation owed under his employment agreement "and other compensation he would have received." He is also seeking unspecified punitive damages.

Known as "Pharma Bro," Shkreli, 36, is perhaps best known for raising the price of the anti-parasitic drug Daraprim by more than 5,000% while serving as chief executive of Turing Pharmaceuticals, now known as Phoenixus AG.

He also became known for his use of social media, including when he offered followers a $5,000 bounty for a hair from former U.S. presidential candidate Hillary Clinton.

A jury in Brooklyn, New York, convicted Shkreli in August 2017 of defrauding investors in hedge funds he once ran, and conspiring to manipulate Retrophin's stock price. He was acquitted on other charges.

Shkreli is serving his sentence at a low-security prison in Allenwood, Pennsylvania.

He had been imprisoned in Fort Dix, New Jersey, but was moved after The Wall Street Journal said in March he was helping "call the shots" for Phoenixus from there, with the aid of a contraband smartphone, as that company's "shadow power."

© Reuters. FILE PHOTO: Former drug company executive Martin Shkreli exits U.S. District Court after being convicted of securities fraud, in the Brooklyn borough of New York City

The case is Shkreli v Aselage et al, U.S. District Court, Southern (NYSE:SO) District of New York, No. 19-05120.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.