Companies Founded by Pharma Bro Martin Shkreli Will Pay Up to $28M in Class-Action Settlement Over Daraprim Price Hike

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Martin Shkreli raised the price of the prescription drug Daraprim by more than 4,000. He recently was banned for life from the pharmaceutical industry.

The companies' settlement with a class led by Blue Cross & Blue Shield of Minnesota, which includes other third-party insurer payers for Daraprim, comes two weeks after a judge ordered

Shkreli be banned for life from the pharmaceuticals' industry, and that he pay back $64.6 million in profits from the drug. The settlement deal between Vyera Pharmaceutics, its parent firm Phoenixus AG, Shkreli, another former company executive Kevin Mulleady, and Blue Cross has to be approved by a federal judge in Manhattan. Under terms of the proposed settlement, the defendants did not admit wrongdoing.

The up-to-$28 million payout from Vyera and Phoenixus will come from the $40 million that the company earlier agreed to pay to end a lawsuit filed by the Federal Trade Commission, Shkreli chose to go to trial on the FTC's claims, which led to finding by a federal judge that while serving as Vyera's CEO, he had violated federal and state laws with anticompetitive conduct to protect profits from Daraprim.Money Report

 

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