Page 125 - CL Armchair Case

done against a background of political, media and medical

profession criticism.

Luck! Shkreli certainly does have his share of it! He and

Elea Capital Management benefited from Lehman falling

in the financial crash of 2008 thereby avoiding paying

$2.3m. Even if the action had gone ahead it is still

questionable whether he would or could have paid or filed

for bankruptcy.

In late 2012, Shkreli took Retrophin public through a

“reverse merger,” This entailed merging into an existing

publicly traded shell company. Costs of attaining a public

quotation are avoided but access to the investing public is

obtained. Such deals are so notoriously sleazy that the

S.E.C. had issued a bulletin, warning investors to stay away

from them.