Shkreli settles litigation with Retrophin

(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.

A Retrophin spokeswoman said on Thursday that the accord covers Mr. 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 Mr. 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 Mr. 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 Mr. Shkreli left.

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

Known as "Pharma Bro," Mr. Shkreli, 36, is perhaps best known for raising the price of the antiparasitic 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 Mr. Shkreli's appeal of that conviction on June 28.