On Dec. 17, Shkreli was arrested for allegedly engaging in a Ponzi-like scheme at his former hedge fund and Retrophin Inc, a pharmaceutical company he previously headed. KaloBios' outside counsel, Evan Greebel, was also arrested, and on Dec. 29 KaloBios filed for bankruptcy.
The investors said KaloBios lied when it told them it and its officers were not subject to any pending investigation that could have a material impact on its business, according to documents filed in the U.S. Bankruptcy Court in Wilmington, Delaware.
According to court papers filed by the company on Monday, Shkreli owns about 47 percent of KaloBios stock and 26 percent is held by the investors suing the company: Gregory Rea, RTAT LLC, Edward Painter, Nancy Retzlaff and Armistice Capital Master Fund.
"KaloBios, through Shkreli, its outside counsel and potentially others, knew or should have known about the FBI investigation, the gravity of the potential charges, and the fact that Shkreli's and its outside counsel's arrest was imminent," the investors said in court papers.