- In a regulatory filing, Retrophin (NASDAQ:RTRX) discloses that the Oversight Committee appointed by the Board of Directors to investigate potential stock irregularities surrounding former CEO Martin Shkreli confirmed the existence of inappropriate transactions between him and former investors.
- Between September 2013 and March 2014, the company entered into consulting agreements and releases with individuals or entities that had been investors in investment funds run by Mr. Shkreli (MSMB Entities). The agreements provided for the issuance of 612,500 shares of RTRX stock and $400,000 in cash payments by Retrophin. No consulting was done. Their predominant purpose was to settle and release claims against the MSMB Entities or Mr. Shkreli himself.
- The company entered into settlement agreements in Q2 2013 with MSMB investors pursuant to which Retrophin paid ~$2.2M in cash and issued 11,000 shares of stock plus additional deliveries by him of 47,128 shares and 80,000 shares to two such investors. Another settlement of $300,000 was paid by the firm to an investor to settle and release claims against MSMB Entities and Mr. Shkreli.
- In Q2 2014, Retrophin settled two lawsuits involving persons who performed services to the company to which it paid $200,000 in cash in exchange for the transfer of 176,388 shares directly to Mr. Shkreli.
- Retrophin paid or forgave an additional $1.2M in monetary obligations for the benefit of MSMB investors.
- Previously: Retrophin CEO canned due to stock irregularities (Oct. 2, 2014)