Reed Smith represents PleasrDAO, a group of digital artists that purchased the physical album in 2021 and the copyrights in January 2024. The group has kept the album in a secure location, including armed security guards and continual video surveillance, at all times since the purchase.
Despite a court order to relinquish all rights to the album, millions in fines against him, and nearly a year spent in prison, Shkreli has recently bragged on social media that he illegally kept copies of the data and files with the music and has disseminated and/or will disseminate them.
On June 9, he bragged about a “Wu Tang official listening party” in posts from his X account. He had previously tagged PleasrDAO in posts telling followers to “look out for a torrent.” In a separate post, he wrote, “LOL i have the mp3s you moron.”
Yesterday’s Temporary Restraining Order by EDNY District Judge Pamela K. Chen, finds that it is likely that Shkreli violated the 2018 forfeiture order given by Eastern District of New York and the Defense of Trade Secret Acts. He must appear in Court on June 25 to explain why he should not be ordered to provide an inventory of the data and files that he has kept and disseminated, and to be enjoined from possessing, disseminating, or selling such music until the time of trial.
“Martin Shkreli is well known to this court for his bad acts, and we’re pleased with Judge Chen’s order that protects our client’s rightful ownership of the Album,” said PleasrDAO counsel Steven Cooper of Reed Smith. “We’re confident that the court will continue to do the same and prevent Shkreli from disregarding the rule of law and the rights of artists and owners, going forward.”
Wu-Tang Clan, one of the most famous hip-hop groups in the country, recorded the secret 31-track album from 2007 to 2013. It includes guest appearances by musicians Cher and Redman, celebrity actors, and professional athletes.
According to the group that funded the album’s creation, the release of a single copy was meant to protest what the group saw as the devaluation of music in the digital era. Unlike its other album releases, Wu-Tang never released this one to the public.
The album was sold to Shkreli in an ornate boxed set that includes a hand-carved, nickel and silver box, a gold-leafed certificate of authenticity, a pair of custom speakers, and a 174-page leather-bound manuscript containing lyrics and song notes.
When Shkreli bought the album in 2015, it was the most expensive musical work ever.
Just two months later, a grand jury in the Eastern District indicted him on numerous securities and wire fraud counts. He was found guilty of two counts of securities fraud and one count of conspiracy in August 2017.
With his sentencing still pending, the court revoked Shkreli’s bail and ordered him to be detained after he threatened former Secretary of State Hillary Clinton by publicly offering $5,000 to anyone who would “‘grab’ some of her hair” on his behalf.
In March 2018, Shkreli was sentenced to prison and ordered to forfeit the proceeds of his fraud and up to $7,360,450, including the Wu-Tang album. The order specifically prohibited him from taking “any action that would have the effect of diminishing, damaging and/or dissipating” the album.
Shkreli has been and remains a vocal opponent of PleasrDAO, Wu-Tang, and the judicial system as a whole. He also recently violated the terms of his supervised release by traveling out of state without permission from his probation office.
PleasrDAO is a collective of DeFi leaders, early NFT collectors, and digital artists who have built a formidable yet benevolent reputation for acquiring culturally significant pieces with a charitable twist.
The Reed Smith team, led by Steven Cooper, also includes Charles P. Hyun and Robert Carnes.
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