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Pharma Bro Shkreli, States Spar Over Documents in Antitrust Suit

June 30, 2020, 5:46 PM

Convicted “Pharma Bro” Martin Shkreli and his attorneys are asking a judge to compel seven state attorneys general who sued him and the company he founded, Vyera Pharmaceuticals LLC, to produce documents deemed crucial in an ongoing federal antitrust lawsuit over drug price hikes.

The states, which include California and Virginia, have “refused” to provide any discovery related to purchases and reimbursements of Daraprim, the parasitic infection treatment drug at the center of the case, Vyera’s attorney, Steven Reed of Morgan, Lewis & Bockius LLP, said Monday in a letter filed with the U.S. District Court for the Southern District of New York.

The states, led by New York’s Attorney General Letitia James, have disputed such claims. Shkreli and Vyera “wrongly contend” that the states haven’t produced all of the files in their possession, the states said in their own letter to U.S. District Court Judge Denise Cote, who is presiding over the case.

“The information that Defendants are seeking from state agencies is not relevant, and the data and information relevant to the calculation of Defendants’ ill-gotten gains are in Defendants’ possession, custody and control- not ours,” Elinor Hoffmann, the acting chief of New York’s antitrust bureau, said Monday in a letter.

In January, the Federal Trade Commission and New York sued Vyera—formerly known as Turing Pharmaceuticals—along with co-owners Shkreli and Kevin Mulleady, for allegedly violating antitrust law when acquiring and then immediately raising the price of Daraprim by nearly 4,000%.

Mulleady, Shkreli, and Vyera are also accused of blocking the entry of a generic version of the drug by creating restrictive distribution agreements to prevent competitors from accessing samples of Daraprim.

Six more states joined the lawsuit in April.

Attorneys for Shkreli have also accused the states of failing to produce additional documents related to discovery requests other than those already turned over by the FTC and New York.

Shkreli is currently in prison serving a seven-year sentence for defrauding investors in hedge funds that he ran and also manipulating shares in another drug company, Retrophin Inc., which he founded.

The case is Federal Trade Comm’n v. Vyera Pharm., LLC, S.D.N.Y., No. 1:20-cv-00706, letter filed 6/29/20.

To contact the reporter on this story: Victoria Graham in Washington at vgraham@bloomberglaw.com

To contact the editor responsible for this story: Roger Yu at ryu@bloomberglaw.com; Laura D. Francis at lfrancis@bloomberglaw.com

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