Retrophin Sues Fund Co-Founded by Shkreli Over Loans

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  • Former CEO left the pharmaceutical company in September 2014
  • Suit seeks repayment of $2.18 million plus 5% interest

Retrophin Inc. sued a hedge fund co-founded by its ousted chief executive, Martin Shkreli, seeking more than $2 million in unpaid principal on five loans from 2013.

Shkreli, the 32-year-old biotechnology company founder who gained notoriety after raising the price of a drug for a rare disease by more than 5,000 percent, is accused of illegally using Retrophin assets to pay investors who lost money in hedge funds he ran.

Retrophin sued MSMB Capital Management LLC, a fund founded by Shkreli and his childhood friend and long-time business partner Marek Biestek, in New York state court on Tuesday. The company asked a judge to order the fund to repay $2.18 million in principal and 5 percent interest.

Shkreli didn’t immediately respond to a message seeking comment on the lawsuit. His lawyer, Benjamin Brafman, declined to comment.

Shkreli left Retrophin, which develops treatments for rare diseases, in September 2014. The company sued its founder for $65 million in August, claiming he breached his duty of loyalty to the pharmaceutical company in a long-running dispute over his use of company funds.

The case is Retrophin Inc. v. MSMB Capital Management LLC, 650813/2016, New York State Supreme Court, New York County (Manhattan.)

(Corrects to remove reference to treatment in fifth paragraph.)
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