Martin Shkreli, the ex-pharmaceutical executive infamous for his price-gouging of a lifesaving drug, has been under a lifetime ban from the pharmaceutical industry since 2022. However, federal regulators and attorneys general from seven states are alleging he has repeatedly violated this ban, engaging in stock trading and discussing the industry on social media livestreams.

The Federal Trade Commission and the states, including New York, California and Illinois, have asked a federal judge to hold Shkreli in contempt for these alleged violations. The ban explicitly prohibits him from owning stock in pharmaceutical companies and making public statements that could influence a pharmaceutical company's business.

The case highlights the lengths to which someone can go to defy regulatory constraints. Shkreli's actions, which included raising the price of a crucial drug by 4,000%, raise questions about the effectiveness of such bans and the challenges in enforcing them.

In response to these alleged violations, the FTC and the states are seeking to force Shkreli to divest from all pharmaceutical companies and pay a fine equal to his profits from trading pharmaceutical company stocks. They also want the court to establish clear and escalating consequences for future breaches, including potential financial penalties and incarceration.