Scandalous former hedge fund manager Martin Shkreli dropped from Wu-Tang Clan album art lawsuit.
Ex hedge fund manager “Pharma bro” Martin Shkreli has been dropped from a lawsuit over his infamous $2 million purchase of a never-before-heard Wu-Tang Clan album.
Papers filed in Manhattan federal court this week simply said that all claims against Shkreli, by artist Jason Koza, would be dropped “without prejudice” — without saying why.
A source familiar with the case told The Post the move was likely due to a clause in Shkreli’s purchase agreement that protects him in case of just such a lawsuit.
Weeks later he was arrested by the New York FBI on allegations that he had been running a Ponzi scheme in a former hedge fund. Shkreli has also been the target of a congressional committee investigating drug pricing, and refused to testify at a February hearing.
Koza piled on to the 33-year-old’s woes when he sued Shkreli in February, claiming that his art was used for the album without his approval.
The Long Island artist also sued Wu-Tang Clan producers Robert “RZA” Diggs and Tarik Azzougarh, also known as “Cilvaringz,” both of whom remain defendants to the case.
Shkreli was likely removed from the lawsuit because his purchase agreement carries a clause indemnifying him from costs that question the legitimacy of the sale, said a person with direct knowledge of the case.
“We learned new information late last week, which led us to conclude that any outcome with the other parties in the case would also resolve our claims against Mr. Shkreli,” said Koza’s lawyer, Peter Scoolidge, in an emailed statement.
“However, if that turns out to be incorrect, we will re-file the claims against him,” he added.
Shkreli’s lawyer, John Wait of Fox Rothschild, confirmed the existence of the indemnity clause, but said he did not know why his client was freed from Koza’s claims.
Turing Pharmaceuticals CEO former hedge fund manager Martin Shkreli, dubbed “the most hated man in America” for gouging patients dependent on a drug used for HIV and cancer treatment, was arrested at his home in Manhattan today