June 20, 2019 / 9:15 PM / 2 months ago

Martin Shkreli settles all litigation with his former company Retrophin

NEW YORK (Reuters) - Martin Shkreli, the pharmaceutical entrepreneur serving a seven-year prison term for fraud, has settled all outstanding disputes with Retrophin Inc, the biopharmaceutical company he founded in 2011 and which ousted him three years later.

FILE PHOTO: Former drug company executive Martin Shkreli exits U.S. District Court after being convicted of securities fraud, in the Brooklyn borough of New York City, U.S., August 4, 2017. REUTERS/Carlo Allegri

A Retrophin spokeswoman said on Thursday that the accord covers Shkreli’s $30 million lawsuit last month accusing three former colleagues, including his successor as chief executive, of engineering his ouster and to enrich themselves from his work.

The settlement also covers claims Retrophin first raised in August 2015, in a $65 million lawsuit accusing Shkreli of repeatedly breaching his duty of loyalty to the San Diego-based company. That case moved to arbitration last year.

CNBC earlier reported the settlement.

“Retrophin and Martin Shkreli have reached a settlement resolving all outstanding disputes between them,” the spokeswoman said. “We are pleased with this outcome.”

Edward Kang, a lawyer for Shkreli’s former colleagues, said in an email that the case against them was “resolved amicably.”

The former Retrophin colleagues included Stephen Aselage, who succeeded Shkreli as chief executive; Gary Lyons, the company’s chairman; and Margaret Valeur-Jensen, who became general counsel after Shkreli left.

Shkreli voluntarily dismissed that case on June 18, according to a court filing.

Known as “Pharma Bro,” Shkreli, 36, is perhaps best known for raising the price of the anti-parasitic drug Daraprim by more than 5,000% while serving as chief executive of Turing Pharmaceuticals, now known as Phoenixus AG.

His prison sentence resulted from his August 2017 conviction by a federal jury in Brooklyn, New York for defrauding investors in hedge funds he once ran, and conspiring to manipulate Retrophin’s stock price.

The federal appeals court in Manhattan is scheduled to hear Shkreli’s appeal of that conviction on June 28.

Reporting by Jonathan Stempel in New York; Editing by David Gregorio

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