A MATRIXX Revolution, Part II: Supreme Court affirms Ninth Circuit's holding that life science companies cannot rely on a statistical significance standard when deciding whether adverse event .....

On March 22, the U.S. Supreme Court affirmed the Ninth Circuit's ruling in Matrixx Initiatives, Inc. v. Siracusano, 09-1156. See our prior blog article from November 18, 2010.

Matrixx Initiatives, Inc. (“Matrixx”) is a manufacturer of over-the-counter pharmaceuticals. Its core brand of products is Zicam, a popular cold remedy. NECA-IBEW Pension Fund and named plaintiff James Siracusano brought a securities fraud class action lawsuit against Matrixx in 2005, alleging that Matrixx and three of its executives made certain misleading public statements about the company's projected growth in light of information it had that Zicam's nasal spray had been linked to several cases of anosmia, or loss of the sense of smell. To prevail on a §10(b) claim, a plaintiff must show that the defendant made a statement that was “misleading as to a material fact.” See 17 C.F.R. 240.10b. The Plaintiffs argued that these adverse events were material and that the company's failure to report them in its SEC filings violated the Securities Exchange Act of 1934 (“the Act”).

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Civil Procedure Updates, Products Liability Updates, Science, Computers & Technology Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sheppard Mullin Richter & Hampton LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »