Retrophin sues outspoken founder Shkreli for $65M over alleged misuse of funds
- Retrophin is suing its own founder, the outspoken and at-times controversial hedge fund manager-turned-biopharma gadfly Martin Shkreli, for $65 million for allegedly mismanaging the firm's funds. The company develops treatments for various rare diseases, including muscular dystrophy.
- Shkreli is fighting back against claims that he misused company funds. He left the comany in September 2014.
- Retrophin alleges that Shkreli used sham consulting agreements to settle legal disputes against him and the hedge funds that he was managing.
The claims against Shkreli, which were formalized in a suit filed in Manhattan—Retrophin Inc. v. Martin Shkreli—are so bad that the company says that he does not even deserve post-separation benefits or any other type of compensation. However, Shkreli vehemently denies the claims and plans to countersue.
Shreli, a prolific user of social media, punctuated his response with Twitter posts and called the lawsuit "preposterous." He explained that Retrophin owes him a great deal of money. This is a case that industry observers are sure to keep a close eye on—especially with the specter of more bombast from Shkreli during the proceedings.