Against My Better Judgment, Here — But…

KaloBios-Shkreli-NOT-Persecuted-2016UPDATED: That was speedy — US Rep. Elijah Cummings just accepted Mr. Shkreli’s waiver of Five! Shkreli doesn’t get that this is not some high school game. This is his liberty and life at stake — and he has no idea what he’s done, as a matter of law.

Mr. Brafman better hurry up and jump in, because now Mr. Shkreli is corresponding VOLUNTARILY (and in writing, for the world to see) with a ranking minority Committee member. A Committee member with SUBPOENA power.  Jeopardy may well attach, now. Trifling with (or misrepresenting oneself) to a sitting Committee of Congress, and thus wasting taxpayer money — may yet lead to some more consequences for the lil’ guy.

What an idiot the lil’ guy is. [End, Update. H/T to Dr. Martin for the alert, in comments!]

SGP-cong2

This is (at best!) another bizarre tangent — to the subject matter of this blog — to be certain.

But since it may well change Mr. Shkreli’s ability to defend himself on the eight pending felony charges, I will mention it in passing.

That said — I hate his tweets. They are uniformly self-absorbed, and usually churlishly profane. But at law they are admissions made in writing.

Were I the House Oversight Committee chair, or the lead AUSA in Brooklyn, I might just give Mr. Brafman a jingle — and let him know that the government is excitedly accepting his client’s offer to testify under oath. Immediately. Viz:

“…any chance i can come through this time and actually testify?

Martin Shkreli added,

Actually both are accurate. “Paging Mr. Brafman — Mr. Ben Brafman — your client has (again) gone… bat guano rougue.”
You may also read — in the comments to the earlier posts here about the sexual harrassment allegations being made by the chief commercial officer of Turing, against the former CFO of Turing and its executive officer management team (properly for unlawful retaliation) — all as covered by PathoPhilia. Nice culture Mr. Shkreli (allegedly) created there.
That is all.

Off-Topic Trivia: 25 Years Ago This Morning, A Preposterously Generous Open Invitation Was Offered…

On this day in 1991: First “Internaut Day” — August 23, 1991 — Tim Berners-Lee, later Sir Timothy John Berners-Lee — first opened what he came to call the world wide web. . . to, well. . . the world. For free. An audacious bit of benevolence, that. All that appears here — for good, or ill — is a result of his original largesse.

He opened it to new users — all of us, that is.

So, Happy 25th Anniversary, to you — oh venerable “www”! It is now hard to imagine (for most of us), how we ever got along without you. Here’s to hoping we will never have to.

And as peculiar as it may sound, many — if not most — of the people I have come to love dearly, are and remain deeply connected to me through (and at least in part, because of) this astonishing innovation.

Yet it is by voice and by sight and by deed that those bonds remain strong. So, I say thank you, Sir Berners-Lee!

Onward. Ever. . . onward.

Just To Close Out Here: Dorsey “Uninvited” Martin Shkreli Yesterday

kalobios-Savant-No-Shkreli-Dorsey-2016As PathoPhilia has documented in comments throughout the site, since Monday — finally there is an official press release from Dorsey & Whitney, explicitly assuming responsibility for inviting, and then uninviting Mr. Shkreli. All in under two elapsed days. Hilarious.

Here’s a bit from The Recorder:

…Two days after announcing that Shkreli would attend the event, Dorsey has uninvited him.

“We concluded that controversy surrounding Mr. Shkreli would detract from the focus of the 4D Symposium on critical issues and trends affecting emerging and established life sciences companies and their investors,” the firm said in a statement on Wednesday. “We retracted our invitation….”

Object Lesson, for one Martin Shkreli?

“No, Mr. Shkreli — out here in the real world (unlike your Twitter 70-30 self-administered “popularity” polls — styled as like/hate), you are still nearly universally loathed.”

Get used to the feeling.

And “Boom Goes The Dyn-O-Mite!” No More Shkreli At Law Firm Confab — On Deal-Making!

pathophilia-logo-newOnce again — Dr. Martin is right on top of it:

“…Ha! Well, someone just pulled the plug on Shkreli, because he’s no longer advertised at the Dorsey & Whitney symposium website, and the @DorseyWhitney Tweet promoting Shkreli’s appearance has been deleted.

KaloBios-No-Shkreli-At-DW-2016For what it is worth Savant’s CEO Steve Hurst is still a featured speaker….”

If I had to bet, I’d guess the Dorsey & Whitney equity partners’ executive committee decided this wasn’t a plus, for the firm’s brand.

But it is just as likely that Mr. Brafman told his client that he’d not be able to represent him, in the criminal matter, if he made this Palo Alto appearance at the end of September.

And, this whole dumpster diving event has reminded me to make a special note: by the end of August, New KaloBios will be able to effectively force Mr. Shkreli to sell all his remaining shares back to the company, at a discount to then market price. Dr. Durrant must just be counting the hours, now.

So, we will track that day, as well.

Onward — with a sincere hat tip, to PathoPhilia for excellent — and fast-breaking coverage, here!

imageUPDATED: for Billy — the Shkreli tweet, referencing his travel plans, imaged at right. Click to enlarge it. Just retrieved it as of a few moments ago, late Wednesday night.

In The All The Turgid Excrement Of Yesterday (From Mr. Shkreli), We Forgot To Check For A Motion To Dismiss…

Shkreli-Sealed-Mayo-Jar-2016Last week, I had guessed that Mr. Shkreli wouldn’t spend what I considered to be largely wasted legal fees (at maybe $30,000) — on a motion to dismiss the federal KaloBios securities fraud putative class action pending against him.

I was wrong — he filed some 150 pages yesterday. I’ve linked the main filing as a 31 page PDF here if anyone cares to read it.

But really, who cares? I don’t.

You will recall that Mr. Shkreli is the lone remaining defendant in this action. His argument boils down to “everyone already knew I was a scum-bag, before December 17, 2015.”

KAloBios-Settle-Securities-NDCA-2016Not particularly persuasive when one of his own affirmative statements was that he would be putting significantly more of HIS OWN money in — from December 3, 2015, on — to keep drawing both primary and secondary securities market participants — into the stock’s trading volume, and at what were clearly inflated trading prices.

That is (allegedly) simple garden variety securities fraud — since he did not, in fact, put any additional new money of his own in, when the PIPE transaction closed — and from everything I’ve read, that seems undisputed.

Sure — people could have read all the damning articles about him (and all his other misanthropic escapades, at other companies), but none of those recited that he promised that more of his own funds would be injected into KaloBios — and that he then did just the opposite, cashing some parts of his “investment” out — as we saw in the Chapter 11 proceedings. He made claims against the estate. [It is still not entirely clear whether those were settled in cash — or whether he was simply allowed to retain the benefit of the D&O insurance coverage, for example.]

KaloBios-Shkreli-Shares-Closed-Out-2016But we do know that the agreement he signed in June 2016 does give him a hard floor, on the minimum he will receive in cash, for his “investment” here. That is a benefit he did not have, going into the bankruptcy. [As many know, however — the June agreement also lets New KaloBios snatch those shares from his hands, in various circumstances. Which, after yesterday, I am sure Dr. Durrant is just counting down the days on his calendar, here — since starting the end of August, 2016 — the company may call his shares out of Shkreli’s hands, at a discount to market prices.]

Updated-Hateful-Eight-Shkreli-July-2016So — the above PDF makes for an entertaining regurgitation of the matters at Retrophin, et cetera, but (in my opinion) will achieve nothing, really.

We shall see, after the able Judge has had a chance to review the opposition motion — yet to be filed by plaintiffs’ steering committe counsel, here. We will post that, when it comes in for certain.

Onward — but no doubt, Mr. Shkreli will — on Twitter proclaim that this is his silver bullet answer — to the KaloBios securities fraud claims.

Hilarious — and sad.

 

UPDATED: File In “The Truth Will Often Be Far Stranger” Department…

KaloBios-Savant-Dorsey-2016Once again, the good doctor has sourced more of the background, on Mr. Shkreli’s latest attention-seeking gambit. [Prior notes here.]

UPDATED: The MSM — in the form of Bloomberg Big Law — is now (finally!) covering this story. I’d bet that the company will have a statement shortly, so I’ll not need to make the below call. We shall see.

I will likely call Dr. Durrant this afternoon, to seek his reaction to these matters. This will almost certainly hurt the company’s efforts to reinvent itself, free of the Shkreli stain and stigma. I’ll specifically inquire about whether  Mr. Hurst consulted him before agreeing to appear with Mr. Shkreli — or whether Mr. Hurst engineered the whole thing.

pathophilia-logo-newHere’s PathoPhilia‘s, overnight:

KaloBios2-Shkreli-Dorsey-Whitney-To Talk-Savant-2016…Apparently Dorsey & Whitney partner Evan Ng (imaged in the graphic, standing, below to the right of Mr. Shkreli) is “delighted that our audience will hear Martin Shkreli and Steve Hurst talk about such a high-profile and newsworthy transaction.” I bet there are other attorneys at Dorsey & Whitney who aren’t thrilled with the invitation to Shkreli, which might be interpreted as an endorsement. If Mr. Ng is responsible for the scheduling, it was a bone-headed move and shows poor judgment. It certainly does nothing to bolster the firm’s reputation (as you indicate). Quite the opposite.

According to Shkreli, he’s getting “special permission” to attend:

@BostonBorn66 getting special permission— Martin Shkreli (@MartinShkreli) August 17, 2016

As I say — we will see whether Mr. Brafman puts the brakes on, here.

Great stuff Dr. Martin!

Thanks… and “the truth,” as Arthur C. Clark often said, “will occasionally be far stranger….” This is one of those moments.

PathoPhilia Finds A Gem — Of Truly UN-Imaginable Irony…

pathophilia-logo-new She writes:

“…Interested in your comment on this press release:

“…Martin Shkreli, biotechnology and pharmaceutical investor, and Steve Hurst, CEO of Savant HWP will discuss Shkreli’s latest deal…”

“Shkreli and Hurst will discuss how the KaloBios/Savant deal came together, their observations of KaloBios’ bankruptcy process and the impact of the public eye on pricing practices by life sciences companies….”

If that doesn’t elicit a head-scratching WTF, I don’t know what should. KaloBios2-Shkreli-Dorsey-Whitney-To Talk-Savant-2016

The symposium is supposed to take place in Palo Alto on September 29th. Where the hell’s Durrant in all of this?….”

My reaction: Could this be a hoax?

If it is not… I. Am. Astonished.

I would similarly ask where is Mr. Brafman? He is of course, Mr. Shkreli’s criminal lawyer, who had him “Take Five” (repeatedly) before a Congressional Committee hearing. That guy (a hard-boiled NYC defense lawyer caricature, incarnate) is going to let Martin boast — and you KNOW he will BOAST — about how smart he was to “put the deal together” — and get “the great financing terms, from investors” for it?! I don’t think so. Wow.

I would be certain that the AUSAs will be in the audience, recording, as he blathers on. This simply strains credulity…

Updated-Hateful-Eight-Shkreli-July-2016Okay — scratch that — my new prediction is that Mr. Brafman cancels this one.

I can’t imagine this would — in any way — improve Dorsey & Whitney’s reputation, either. What are the partners there, thinking? Nutty.

In addition to his felony indicted criminal exposures, he still hasn’t settled the KaloBios securities class actions, as the sole remaining defendant in that civil matter. The price gyrations alone from mid-November 2015 through December 29, 2015 will be ample reason for the plaintiffs’ securities lawyers to attend, using this as an informal deposition — each time he talks about what he did to create the deal — they should ask: “Didn’t you promise to put your own money in — more than $2 million of it?” What the hell happened there?

This simply has to be a hoax. Even if the Dorsey firm is representing him in the securities class action in the Northern District of California — this is an unimaginably bad idea — he’s not the kind of guy who can keep his mouth shut, even to save his own skin.

I’ll think a lil’ more on it, overnight. It’s a crazy world — we live in.

pathophilia-logo-new UPDATED: PathoPhilia adds what I think are all excellent points here, after-hours, tonight [My thoughts/answers are in blue, below.]:

Well, if it’s a hoax (and I had to check and re-check the date/year), it’s an elaborate one–complete with a trumped-up symposium website and photos of other speakers. Also wouldn’t Shkreli have to attend virtually? Otherwise he’d have to get permission from the federal judge to leave the NYC area.

Answer: No motion to travel is on file yet, but yes — he will absolutely either have to do it as a live-stream, from his man-cave in NYC — or get the able Judge to enter an order. We shall see.

I would also think that the Kalobios board would object to Shkreli being a de facto representative of the company and its ongoing development deal with Savant. If this doesn’t violate Shkreli’s agreement with the company outright, it certainly violates the spirit of it.

KaloBios-Savant-Dorsey-2016It makes me wonder (if it is not a scam) whether Mr. Hurst is trying to send a message to Dr. Durrant, et al., that he’s not pleased with the pace of things — or something else, entirely — related to the Savant execution. He MUST know that with all the new KaloBios has done to try and put Mr. Shkreli behind it — this will come as a very unwelcome jab in the eye. Mr. Hurst has to know this. Fascinating jujitsu, if that is what underpins this development.

And let’s not even get into Shkreli’s Twitter behavior–which completely undermines anything he might have to say in a future legitimate venue about the pharmaceutical business. A guy who repeatedly uses “thot” and “bish” should have no expectation of respect or being taken seriously–ever again.

I could not agree more completely. His Twitter feed reads like a profane, under-achieving high school kid (but convinced he knows it all!) — on too much Monster energy drink. And he regularly threatens people — including the Progressive wing’s presidential candidate with violence — a “bish slap.” So, if this is his version of trying to repair his reputation — all Dorsey & Whitney is doing is… ruining its own, here by association.

On a few quick clicks, I don’t think it represents Mr. Shkreli. Can’t tell if it represents any of the Savant entities. Just a colossally stupid move, in my opinion — on this otherwise well-respected firm’s part.

Again, just W.T.F. . . .

Agreed.