Martin Shkreli, the infamous pharmaceutical executive, is once again in the legal spotlight, this time over allegations that he copied and distributed the unique Wu-Tang Clan album, Once Upon a Time in Shaolin. A federal judge has intervened, issuing a temporary restraining order to prevent further dissemination of the album, which was sold to PleasrDAO, a digital art collective, in 2021.
Judge Pamela Chen ruled that PleasrDAO would suffer “immediate and irreparable injury” if Shkreli continued to share the album. The judge emphasized that the album’s uniqueness as an original work of art would be compromised, potentially causing significant financial loss to the collective. Shkreli has been ordered to appear in court later this month to address these allegations and may be required to turn over digital records and account for any profits made from the album.
The lawsuit, filed by PleasrDAO, accuses Shkreli of violating both the purchase agreement and a federal forfeiture order by retaining and distributing digital copies of the album. The group claims that Shkreli’s actions have eroded the album’s value, which was based on its exclusivity as the sole existing copy.
Shkreli, known for his controversial behavior, responded to the lawsuit with dismissive and mocking comments on social media. He referred to the plaintiffs as “super nerds” and called the lawsuit “frivolous.” Despite the legal threats, Shkreli appeared unfazed, even suggesting that he could leak the album online out of spite.
The Wu-Tang Clan album, recorded in secret and released as a single copy, was initially purchased by Shkreli in 2015 for $2 million. The sale included a stipulation that the album could not be duplicated or released to the public until 2103. However, Shkreli’s subsequent legal troubles led to the album being forfeited as part of his restitution for securities fraud.
PleasrDAO acquired the album from federal prosecutors for $4 million and later obtained the copyrights and other rights for an additional $750,000. The collective planned to hold private listening events, including an upcoming exhibition at an Australian museum, where fans could experience the album’s music.
However, the lawsuit alleges that Shkreli retained copies of the album and has been threatening to release them publicly. In various social media posts, Shkreli has boasted about having digital copies and even played portions of the album during live streams, attracting thousands of listeners.
The legal battle has significant implications for the value of the album and the potential profits PleasrDAO could earn from exclusive listening events. The group argues that the widespread availability of the album’s music would diminish its uniqueness and resale value.
Judge Chen’s restraining order aims to prevent further damage to PleasrDAO’s interests. Shkreli is barred from using, disseminating, streaming, or selling any interests in the album. The judge also warned Shkreli of potential criminal penalties if he violates the order.
Shkreli’s legal troubles began in 2017 when he was convicted of securities fraud and conspiracy. He was sentenced to seven years in prison and ordered to repay $7.4 million. The forfeiture of the Wu-Tang Clan album was part of his restitution.
Since his release from prison in May 2022, Shkreli has continued to court controversy. He has openly admitted to playing the album during live streams and has made provocative comments about retaining digital copies. His actions have prompted PleasrDAO to seek legal recourse to protect their investment.
The lawsuit seeks to compel Shkreli to destroy all copies of the album and forfeit any money earned from its unauthorized distribution. PleasrDAO is also seeking compensatory and punitive damages.
As the legal battle unfolds, the fate of the unique Wu-Tang Clan album hangs in the balance. The case highlights the challenges of preserving the value of exclusive art in the digital age and the lengths to which collectors will go to protect their investments.
