SACRAMENTO (CBS13) — California’s attorney general has announced a $40 million settlement in the price gouging case against the notorious “Pharma Bro” Martin Shkreli.
The settlement was against Vyera Pharmaceuticals and parent company Phoenixus.READ MORE: 11-Year-Old Loomis Boy Reunited With Stolen Dirt Bike; Deputies Track Down Suspect
Shkreli and those pharmaceutical companies were accused in 2015 of buying the rights for the life-saving drug Daraprim, then raising its price by more than 4000% – going from $17.50 a table to $750.
“Overnight, Daraprim went from an affordable and accessible treatment to one that was far out of reach for the people who relied on it,” said Attorney General Rob Bonta in a statement. “The selfish choices these defendants made put lives at risk, forcing patients, hospitals, and physicians to make difficult treatment decisions because they lacked access to a potentially life-saving medication.”READ MORE: Rocklin Teacher Comes Under Fire For Years-OId Tweets With Derogatory, Racist Tone
Shkreli has since been convicted and is now serving a seven-year sentence on securities fraud. However, last year, the Federal Trade Commission also charged him for allegedly restricting competition on Daraprim – allowing Vyera Pharmaceuticals to maintain a monopoly on the drug.
Tuesday’s settlement announcement stems from the FTC’s charges.
Along with the $40 million settlement, the AG’s office says former Vyera CEO Kevin Mulleady will also be banned from working win the pharmaceutical industry for at least seven years.MORE NEWS: SCUSD's New Race And Equity Liaison Talk District's Move To Fire Teacher Who Used N-Word
Shkreli will also still be facing trial in the case. That trial is set to begin on Dec. 14.