Stockholders v Matrixx Initiatives, Inc.
Stockholders File Lawsuit Against Matrixx Initiatives, Inc.
According to a press release dated July 17, 2009, the complaint was filed in the United States District Court for the District of Arizona and seeks damages for violations of federal securities laws on behalf of all investors who purchased Matrixx stock between December 22, 2007 and June 15, 2009, inclusive (the "Class Period"). Matrixx is a nutrient and drug delivery company that develops, manufactures and markets delivery systems for bioactive compounds. The Company, through its subsidiary, produces, markets and sells, among other pharmaceutical products, Zicam Cold Remedy nasal gel, Zicam Cold Remedy gel swabs, and Zicam Cold Remedy children's swabs.
The Complaint alleges that, throughout the Class Period, Defendants failed to disclose material adverse facts concerning the Company's operational well-being and future prospects. Specifically, Defendants failed to disclose or indicate (1) that Matrixx had received notice of hundreds of serious adverse events involving consumers' use of the Zicam Cold Remedy Products; (2) that Matrixx failed to report these incidents to the FDA despite having an obligation to do so; (3) that the Company failed to comply with FDA regulations despite repeated assurances of its compliance; and (4) that, as a result of the foregoing, the Company's statements about its meeting FDA regulations were false and misleading when made.
As a result of this news, the Company's shares declined $13.46 per share, or an astounding 70 percent, to close on June 16, 2009 at $5.78 per share, on unusually heavy trading volume.
If you bought Matrixx Initiatives, Inc. securities and would like to obtain information about the Matrixx Initiatives, Inc. lawsuit, then you are invited to call Kahn Swick Foti, LLC toll free at (866) 467-1400 to speak with an attorney or visit www.ksfcounsel.com.
