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...