‘Pharma Bro’ Shkreli Can Keep Fox Rothschild as Counsel

Photographer: Peter Foley/Bloomberg

  • Fox Rothschild defended both Martin Shkreli, his former company in securities fraud suit
  • No actual or anticipated conflict, so disqualification denied

Martin Shkreli and his former company, Turing Pharmaceuticals, LLC, dodged a disqualification motion in a civil securities fraud case Aug. 7.U.S. Magistrate Judge Lois Bloom of the Eastern District of New York Aug. 7 said “there is no actual conflict of interest” here so Fox Rothschild can keep representing both defendants.

Former employee and investor Edward Painter sought to disqualify the firm because “Vyera may, at some point in the future, decide to assert cross-claims against Shkreli.” But the defendants waived any potential conflicts, Bloom said.

And Painter’s assertion about a cross-claim was “a mere smokescreen,” she said.

Painter was the director of investor relations at Turing, which later changed its name to Vyera Pharmaceuticals, LLC, according to his complaint. He sued Shkreli and Turing for alleged misrepresentations that induced Painter to invest in Turing and for breach of contract.

If the waivers are revoked or an actual conflict arises, Bloom said the issue could be revisited.

Painter was represented by Lally & Misir, LLP. Defendants were represented by Fox Rothschild LLP.

The case is Painter v. Turing Pharm., LLC, E.D.N.Y., No. 17-CV-7558, 8/7/18.

To contact the reporter on this story: Mindy Rattan in Washington at mrattan@bloomberglaw.com

To contact the editor responsible for this story: S. Ethan Bowers at sbowers@bloomberglaw.com