SCOTUS: Investors can sue Zicam firm for nondisclosure

posted by
March 23, 2011
The Christian Science Monitor    
Posted in PND News

"When reports surfaced that some consumers of the now-discontinued cold remedy Zicam had lost their sense of smell, the manufacturer, Matrixx Initiatives, Inc., saw shares of its stock lose value. The drug company issued statements in defense of the product, first dismissing the incidence of the loss of sense of smell as statistically insignificant, then saying there was no scientific basis for linking Zicam to the apparent side effect. On Tuesday, in a 9-to-0 decision, the US Supreme Court cleared the way for an investor class-action lawsuit to move forward against Matrixx, saying the company had an obligation to reveal details of the observed side effects to investors even though the company’s information did not rise to the level of statistically significant data." (03/23/11)  

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