Price-Hiking Exec Martin Shkreli Invokes Fifth Amendment, Refuses to Give Records to Lawmakers

House committee to hold hearing

Martin Shkreli, the former drug company CEO charged with securities fraud, has been subpoenaed by a U.S. congressional committee investigating the price of drugs, according to a report from BloombergBusiness.

The House Committee on Oversight and Government Reform will hold a hearing on January 26 to look into “developments in the prescription drug market,” and the committee has asked for documents about how treatments are priced from several companies, including Shkreli’s former firm, Turing Pharmaceuticals AG. Turing sparked an uproar last year after it acquired the decades-old antiparasitic drug pyrimethamine (Daraprim) and promptly hiked the price from $13.50 to $750 per pill.

“I have been trying for the better part of a year to get information from Martin Shkreli about his outrageous price increases, and he has obstructed our investigation at every turn,” said U.S. Representative Elijah Cummings (D-Maryland), the top Democrat on the oversight panel.

Shkreli is facing charges related to another former company, separate from Turing, and several hedge funds he used to run. He has maintained his innocence and has pleaded not guilty. It isn’t clear whether he will appear at the upcoming congressional hearing.

The Senate Special Committee on Aging is also investigating drug price hikes and asked for documents last year from four pharma companies, including Turing. In December, the committee twice subpoenaed Shkreli for records related to business conducted on his personal devices, Chairwoman Susan Collins (R-Maine) said on the Senate floor. Shkreli invoked the Fifth Amendment and hasn’t handed over the documents, she said.

Source: BloombergBusiness; January 20, 2016.