Martin has been ordered to surrender all possession of the unique Wu-Tang Clan album.
Judge Pamela Chen in the Eastern District of New York issued a provisional restraining order against Elon Shkreli, prohibiting him from possessing, utilizing, disseminating, or selling any interest associated with the Wu-Tang Clan album "Once Upon a Time in Shaolin." This includes any related data, files, or other album contents.
The ruling on Monday is a part of the ongoing legal dispute between Shkreli and PleasrDAO, a collective of NFT enthusiasts. They acquired the album through two transactions in 2021 and 2024, amounting to $4.74 million. However, they filed a lawsuit against Shkreli in June due to his alleged retention of the album copies and his intention to release them publicly, according to the complaint.
In response, Shkreli's lawyer Edward Paltzik stated that "this Order is simply a temporary measure imposed by the Court to preserve the apparent status quo prior to any fact-finding - it has no bearing whatsoever on the ultimate outcome of the case."
The Wu-Tang Clan created "Once Upon a Time in Shaolin" under wraps over a six-year period, with the intention for only one two-CD set to be produced, with no digital or streaming release. Shkreli reportedly paid $2 million for the album in 2015, which included a handcrafted nickel-silver box and a leather-bound manuscript containing lyrics and a certificate of authenticity.
The album was intended to be "a piece of art unlike anything else anyone has done in the history of (modern) music," according to Wu-Tang member Robert "RZA" Diggs in an interview with Forbes in 2014.
Despite PleasrDAO being recognized as the sole owner of the supposedly unique album copy, Shkreli allegedly hosted live streams where he bragged about retaining copies and played bits of the album, according to the PleasrDAO lawsuit. Shkreli also reportedly claimed to have music files from the album in a message to a PleasrDAO member on X in April 2024.
"LOL i have the mp3s you moron," Shkreli allegedly wrote on X.
The lawsuit further alleges that Shkreli stated on a podcast in May that he "burned the album and sent it to around 50 different women."
Shkreli gained notoriety as the CEO of Turing Pharmaceuticals, which increased the price of the life-saving drug Daraprim used by AIDS patients from $13.50 per pill to $750 per pill.
He faced charges and was convicted of securities fraud and conspiracy related to his tenure as CEO of Retrophin (RTRX), a different biotech firm that ousted him in 2014. In 2018, he was sentenced to seven years in federal prison and ordered to pay a $750,000 fine, in addition to a $7.4 million forfeiture.
The income from the sale of "Once Upon a Time in Shaolin" was used to settle the remainder of the forfeiture.
The Monday ruling requires Shkreli to return all copies of the album to his defense counsel by August 30 and to sign an affidavit confirming that he has done so. By September 30, he must sign another affidavit disclosing an inventory of all copies he has, along with the recipients' names and addresses, as well as the profits derived from distribution.
Steven Cooper, an attorney representing PleasrDAO, described the filing as an "important victory" in a statement. "We are pleased that Judge Chen recognized that immediate relief was necessary to halt the continuing harmful actions of Mr. Shkreli."
CNN has reached out to Wu-Tang Clan for comment.
CNN's Moira Ritter and Chris Isidore contributed to this report.
The provisional order from Judge Chen not only restricts Shkreli from selling the Wu-Tang Clan album, but it also applies to any business transactions related to it.
Amidst this legal issue, Shkreli's business activities related to the "Once Upon a Time in Shaolin" album have attracted significant attention and controversy.
