Shkreli Will Pay AT LEAST $1.5 Million, In Cash, To Those Defrauded KaloBios Stockholders…

The nearly-final figures are emerging from the US District Court filings in San Jose, California, this afternoon. Here is a bit of the 32 page (PDF file) motion for settlement, just filed:

“…As a result of these extensive efforts, Plaintiffs Lead Counsel secured a Settlement with Defendant Shkreli of one million five hundred thousand dollars ($1,500,000.00) in cash….”

This is not (so much) a reflection of how much was actually lost, in the KaloBios fraud by the stockholders. On the contrary, it is more likely just about all Marty will have left. That is, after discovery (in a very private JAMS mediation proceeding) — it tells you that he likely has almost nothing left — after paying his lawyers, his criminal forfeitures, fines and restitution — and the taxing authorities. [As well as the monies he owes Mr. Painter (pretty soon), as we’ve mentioned.]

And… if you want a rundown of everything that happened at KaloBios — here’s a link — to the full 93 page settlement agreement (now amended, to include ALL defendants) — the newest part being Mr. Shkreli’s portion — reached (as I say) after an all day JAMS mediation, last month. Marty appeared by telephone, from the Brooklyn MDC, for that one, on February 13, 2018.

Onward. Oh, and… Mr. Greebel’s request for a new trial has also been answered by the able AUSAs overnight. It too runs over 90 pages.

More bed-time reading…. Hah! Now… GO RAMBLERS!

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47 thoughts on “Shkreli Will Pay AT LEAST $1.5 Million, In Cash, To Those Defrauded KaloBios Stockholders…

      • R West says:

        People probably wonder why we waste so much time on this Shkreli/Greebel stuff … but still doesn’t match all the time wasted on March Madness! Watching a whole game with commercials is a big waste of time, when all one needs to see are the last two minutes … or the Youtube highlight reel!

        Key to winning are those three-pointers … because if you miss, the ball bounces so far out, you have a good chance to get it back. They could all take a lot more threes … just like when UMBC beat UVA …. except eventually the defense will come out (unless you’re UVA)!

        Liked by 2 people

  1. blue22 says:

    If you look at the form def14a on the sec website you can see that shkreli owned 13% of retrophin in 2014 and about 10% of it in 2015 and i think that 10% ownership was liquidated by 2016. He most likely has funds (on the order of 50 million dollars) hidden away offshore but because of the statements made by the Court regarding opening new bank accounts, he won’t be able to access that money. Rich people don’t just end up destitute as many of you seem to be hoping. At the end of the day, Shkreli did innovate a lot of new drugs and did provide value to society despite the fact that he’s crude and immature.

    Liked by 1 person

    • condor says:

      One wrinkle — if he’s lied about his assets to DoP, and thus Judge Matsumoto — he will do another four or five years.

      He’s now a three time loser.

      He has no way to get that money back here… and I’ll bet you a root beer he’s… broke.

      [A lot of his declining percentage was dilution… other issuances… IIRC.]

      More importantly — Loyola up 12 in second half!

      Namaste, from ATL!

      PS: not one of those drugs were developed by him. Name one. And I’ll lay it out for ‘ya! Smile!

      Liked by 1 person

      • condor says:

        He neglected the development effort — ran no clinical trials — and left it for others to do the real work of getting it approved at Retrophin, post his ouster. He was and is a poseur, on that one!

        But believe whatever you like… the truth doesn’t require that you believe it — in order for it to remain… the truth.

        Namaste — wi fi on plane!

        Still grinning ear to ear!

        Liked by 1 person

    • billythekid9919 says:

      “Shkreli did innovate a lot of new drugs and did provide value to society”. This statement is just pure fantasy, projected from the mind of a convicted felon… and imprinted on the gullible. But it’s a free country. You’re free to be hoodwinked by a conman if you wish. That’s just not my bag baby.

      Liked by 1 person

  2. R West says:

    AUSA’s are also good at the “you don’t know what you’re talking about” thing … they just call it “preposterous” … got to remember that!

    Liked by 1 person

  3. billythekid9919 says:

    The financial tab for Marty continues to grow… His reported $27million wealth is continually shrinking. Most of that $27million is his interest in Vyera… who’s value is highly uncertain. It should be fun watching how the various assets get picked apart going forward.

    Liked by 2 people

    • aldt440 says:

      I think Elon Musk / Tesla / Solar City / SpaceX is going to be the next mega scandal.

      Without going into detail, this trifecta borrows VC money from Musk at VC rates. It also borrows VC money from the public at AAA rates. Collectively, the group of companies don’t make any money. Here’s some clues to anyone that wants to connect the dots.

      This is Shkreli style insanity:

      https://www.cbsnews.com/news/elon-musk-pay-package-of-2-6-billion-meets-with-tesla-shareholder-approval/

      Liked by 1 person

      • billythekid9919 says:

        Musk is an interesting figure. Seems like more of a visionary than a public company CEO. I’d like see him meet some deadlines that he himself sets for Tesla. I’m pretty certain though in the electric vehicle industry he’s dealing with a very small competitive advantage… the other companies are catching up and they have a better track record of delivering on promises. It will be fascinating to watch though.

        Liked by 1 person

      • aldt440 says:

        Tesla needed $500MM to get started in 2008. The US Government lent $465MM to Tesla at 3% interest under its push for Green Energy. Elon Musk lent the company $38MM at 10% interest plus stock options. Here are the profits on those loans:

        Elon Musk’s $38MM? generated a profit of < $1.4BB?, or 3,600% ROR – a VC payout
        The Forbes article says he ponied up $6.35M in series A that was worth 219M!! at IPO. He bought 13M shares in Series B rounds and 20M? in C rounds too.

        Taxpayers’ $465MM- generates profits of $12MM or 2.6% ROR – not a VC Payout

        To sum it up, taxpayers took VC risk without VC returns.

        https://www.forbes.com/sites/quora/2014/12/29/how-much-equity-did-elon-musk-get-from-investing-in-teslas-series-a/#5707ffa92a9f

        http://www.autonews.com/article/20130522/OEM05/130529956/tesla-pays-back-balance-of-doe-loan

        There's a lot more time consuming stuff to explain, but this is the best place to start. To keep it simple, Musk loves Series A financing rounds and skims the froth off of low rate government loans. If one of his companies runs into trouble, he misappropriates government loans from his other companies to pick up the slack. He launched a car into space and runs around with a flamethrower to keep the dummies off his trail.

        Liked by 1 person

      • condor says:

        This is really solid stuff — a lot of it I did not know… I’ve not followed all of Musk’s ventures, but I made some good money in 2014-2015 by being long at the right moments in Tesla.

        I still will eventually buy one of his cars… now that the kinks seem all worked out on the earlier S models.

        Thanks!

        So maybe we need a poll: next blog?

        Tesla?

        Holmes/Theranos?

        The latter may be a shorter one! Over soon!

        Hah!

        Let me know, by comments… I clearly will NOT have the bandwidth to do both…

        Namaste!

        Liked by 1 person

      • billythekid9919 says:

        If I recall correctly… didn’t Musk fold Solar City into Tesla after they had burned through most of their cash? It was a little questionable since he was the CEO of both companies. Correct me if I’m wrong on that.

        Liked by 1 person

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