Shkreli’s Lawyers Say They’re Owed $2M From Antitrust Suit

The law firm that defended Shkreli in an antitrust case said he owes them at least $2 million more in unpaid fees and costs. And they want out.

The motion to withdraw as counsel comes after a federal judge ruled that he concocted an anticompetitive scheme to stave off generics for a life-saving antiparasitic. Shkreli, who’s now serving a seven-year prison term for an unrelated criminal fraud case, became infamous for jacking the price of the same drug, known as Daraprim, although he didn’t face any legal consequences for that.

In a filing, Duane Morris noted that Phoenixus — a reincarnation of Shkreli’s former company, Turing Pharmaceuticals — had originally agreed to pay Shkreli’s legal bills for this case, which it did until October 2021 through an insurance policy.
But once Phoenixus exhausted the policy limits, it refused to pay.

“Neither Phoenixus AG nor Mr. Shkreli disputes the amount of Duane Morris’ invoices or that Duane Morris is entitled to be compensated for continuing to represent Mr. Shkreli in this case,” the firm wrote. “However, Phoenixus AG is declining to pay, and Mr. Shkreli cannot pay, these fees and costs.”

The Federal Trade Commission and seven US states brought the anticompetitive suit against Shkreli, essentially claiming he was running a drug monopoly from behind bars. As part of the ruling, he faced a lifetime ban from the pharmaceutical industry and was ordered to pay $64.6 million back in profits.

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