Martin Shkreli Hit With Lawsuit Over Wu-Tang Clan's Secretive Album

BY Cole Blake 1397 Views
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News: Martin Shkreli Jury Selection
June 26, 2017; Brooklyn, NY, USA; Jury selection in the fraud trial of pharmaceutical entrepreneur Martin Shkreli, arriving at Federal Court in Brooklyn with his lawyer Benjamin Brafman, is scheduled to start at 9:00 a.m. Monday, June 26 in Brooklyn federal court. Mandatory Credit: Robert Deutsch-USA TODAY via Imagn Images
Martin Shkreli lost ownership of the album after being found guilty on two counts of securities fraud and one count of conspiracy in 2017.

Martin Shkreli is facing a new lawsuit related to Wu-Tang Clan’s iconic album, Once Upon a Time in Shaolin, which he previously held ownership over. According to a new report from Billboard, Judge Pamela K. Chen ruled that the controversial investor may have violated federal protections for trade secrets by retaining copies of the album, despite it going up for auction in 2021.

PleasrDAO purchased the music from federal prosecutors for $4 million and acquired the copyrights in 2024. It brought the lawsuit against Shkreli, last year. They claim he threatened to leak copies on the internet. “LOL i have the mp3s you moron” and “i can just upload the mp3s if you want?” Shkreli allegedly wrote in a pair of posts on X (formerly Twitter) at the time.

“The secret and exclusive nature of the album is a large part of its intrinsic value,” the judge wrote in Thursday's ruling. “There can be no serious debate that the value of the album … was largely based on its secret and exclusive nature.” She did admit that, considering the unusual circumstances surrounding the release of the album, this is "uncharted territory." “Though the court agrees with plaintiff … it cannot be understated that the application of trade secret doctrine to the unique facts of this case is uncharted territory,” she wrote.

Wu-Tang Clan "Once Upon A Time in Shaolin"

Jury Deliberations Continue In Martin Shkreli Securities Fraud Trial
NEW YORK, NY - AUGUST 4: (L to R) Lead defense attorney Benjamin. Brafman walks with former pharmaceutical executive Martin Shkreli after the jury issued a verdict at the U.S. District Court for the Eastern District of New York, August 4, 2017 in the Brooklyn borough of New York City. (Photo by Drew Angerer/Getty Images)

Wu-Tang Clan recorded the album in secret and sold it on a single CD. They noted that the owner could only release it to the general public in 2103. Shkreli originally bought the album in 2015 for $2 million. He soon went viral as the internet deemed him the “Pharma Bro.”

Shkreli ended up losing ownership of the album after being found guilty on two counts of securities fraud and one count of conspiracy in 2017. He had to give up the album to help repay $7.4 million.

About The Author
Cole Blake is a current staff writer at HotNewHipHop based out of New York City. He began writing for the site as an intern back in 2018 while finishing his B.A. in Journalism at St. John’s University. In the time since, he’s covered a number of breaking stories for HNHH. These include the ongoing YSL RICO trial, the allegations surrounding Diddy, and much more. His work also extends outside of hip-hop, having written extensively about a myriad of topics including politics, sports, and pop culture. He’s attended several music festivals to provide coverage for the site as well, such as Rolling Loud and Governors Ball.

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