Martin Shkreli must hand over copy of Wu-Tang Clan album | Wilnesh News

A federal judge in New York on Monday ordered notorious “pharmaceutical bro” Martin Shkreli to hand over all copies of the rare Wu-Tang Clan album “Once Upon a Time in Shaolin” he kept, which he had previously confiscated to the U.S. government after his conviction. Securities fraud cases were frequent in 2017.

The order comes in response to a lawsuit filed by the owner of the one-of-a-kind album, PleasrDAOaccusing him of violating a confiscation order by retaining digital copies of rare hip-hop music and playing them to listeners online.

Cayman Islands-based company PleasrDAO paid $4.75 million for Once Upon a Time in Shaolin in two separate deals in 2021 and 2024.

Brooklyn Federal Court Judge Pamela Chen last month banned Shkreli, who was released from prison two years ago, from streaming or distributing the album.

Chen held a hearing on PleasrDAO’s request for a preliminary injunction on Friday.

Chen wrote in a written order on Monday that the company had raised “sufficiently serious doubts about the substance of Shkreli’s claims” regarding violations of the Protection of Trade Secrets Act, misappropriation of trade secrets and unjust enrichment.

The order prohibits Shkreli from possessing the album or its contents and requires him to turn over any copies of the album he now possesses by Friday.

Chen also ordered him to “submit an inventory and accounts signed by Shkreli” by September 30 detailing “the nature and number of copies of the album data and documents retained by the defendant; (ii) the names and contact information of the individuals” to whom he provided that the data and documents were distributed; (iii) the date and method of distribution; and (iv) the amount, source, date and nature of any proceeds, income, profits or other economic benefits derived by the Defendant from its distribution; or the playing of the album or its content.

Chen’s order will remain in effect pending the outcome of the PleasrDAO lawsuit.

Shkreli’s attorney, Edward Paltzik, said in a statement to CNBC: “This order is only a preliminary step taken by the court to maintain the status quo pending the discovery of any evidence, and the order has no bearing on the final outcome of the case. There is no impact.

“Crucially, the court did not find that PleasrDAO was likely to prevail or that the DAO’s allegations were true, but instead ruled that Mr. Shkreli’s impending motion to dismiss should proceed immediately,” Paltzik said.

Steven Cooper, an attorney at Reed Smith LLP who represented PleasrDAO in the lawsuit, said in a statement that Chen’s ruling “is an important victory for the company.”

“We are pleased that Judge Chen recognized the need for immediate relief to stop Mr. Shkreli’s continued bad conduct,” Cooper said.

Shkreli, 41, was convicted in Brooklyn federal court in 2017 of misleading investors about the performance of two hedge funds he ran and conspiring to fraudulently manipulate the stock of a pharmaceutical company he founded. .

He will be released from prison in May 2022. .

Shkreli gained notoriety in 2015 for increasing the price of the antiparasitic drug Daraprim by more than 4,000% overnight at another pharmaceutical company he ran. This medicine is used to treat pregnant women, infants, and people with HIV infection.

Shkreli was banned for life from the pharmaceutical industry and ordered to pay more than $64 million in forfeited profits for preventing Daraprim from competing as a result of a lawsuit filed by the Federal Trade Commission.