Martin Shkreli ordered to give up all copies of one-of-a-kind Wu-Tang Clan album
New York
CNN
—
Martin Shkreli, the infamous "pharma bro" once convicted of securities fraud, must turn over to his attorneys all copies of what was supposed to be a multi-million-dollar, one-of-a-kind Wu-Tang Clan album and is barred from selling or distributing the album, a federal judge ruled.
Judge Pamela Chen in the Eastern District of New York granted a preliminary restraining order against Shkreli for "possessing, using, disseminating, or selling any interest in the Wu-Tang Clan album Once Upon a Time in Shaolin." That includes any data, files or any other contents of the album.
The Monday ruling is another step in the ongoing lawsuit between Shkreli and PleasrDAO, a group of NFT collectors, which bought the album in two transactions in 2021 and 2024 totaling $4.74 million. But they sued Shkreli in June because the convicted executive retained copies of the album and "intends to release them to the public," according to the lawsuit.
In a statement, Shkreli's lawyer Edward Paltzik said "this Order is merely a preliminary measure entered by the Court to maintain the perceived status quo before any discovery occurs, the Order has no bearing whatsoever on the final outcome of the case."
"Once Upon a Time in Shaolin" was created by Wu-Tang in secret over the course of six years, with the group intending for only a single two-CD copy to ever exist, and with no accompanying digital or streaming release. In 2015, Shkreli paid a reported $2 million for the album, which included a hand-carved nickel-silver box, along with a leather-bound manuscript containing lyrics and a certificate of authenticity.
By releasing only one copy of the album, the legendary hip-hop group wanted to "put out a piece of art like nobody else has done in the history of (modern) music," Wu-Tang member Robert "RZA" Diggs told Forbes in 2014.
But despite PleasrDAO officially owning the only copy of the album that is supposed to exist, Shkreli has hosted live streams where he bragged about retaining copies and played portions of the album, the lawsuit filed by PleasrDAO alleged.
The lawsuit also alleged that Shkreli replied to a PleasrDAO member on X in a string of posts in April 2024, in which Shkreli claimed to have retained music files from the album.
"LOL i have the mp3s you moron," Shkreli wrote on X.
And the lawsuit alleges that Shkreli stated in a May podcast that he "burned the album and sent it to like, 50 different chicks."
Shkreli became notorious as the CEO of Turing Pharmaceuticals, which raised the price of the lifesaving drug Daraprim used by AIDS patients from $13.50 a pill to $750 a pill.
He faced charges and was convicted of securities fraud and conspiracy related to his time as CEO of Retrophin (RTRX), a different biotech company, which ousted him in 2014. In 2018, he was sentenced to seven years in federal prison and ordered to pay a $750,000 fine, on top of a $7.4 million forfeiture.
The proceeds from the sale of "Once Upon a Time in Shaolin" went toward the remaining balance on the forfeiture.
Under the Monday ruling, Shkreli has to return all copies of the album to his defense counsel by August 30 and sign an affidavit confirming he did so. He has to sign another affidavit by September 30 disclosing an inventory of all of the copies he has, who received the copies, including names and addresses, as well as how much money he's made from the distribution.
Steven Cooper, an attorney representing PleasrDAO, called the filing an "important victory" in a statement. "We are pleased that Judge Chen recognized that immediate relief was necessary to thwart the continuing bad acts of Mr. Shrkeli."
CNN has reached out to Wu-Tang Clan for comment.
