Supreme Court sides with investors

July 19, 2011 by

On March 22, 2011, the Supreme Court issued a unanimous opinion rejecting arguments by Matrixx Initiatives that, under the securities laws, adverse drug event reports must be “statistically significant” to be material to investors.  In Matrixx, shareholders had brought claims related to the company’s failure to disclose reports linking its leading product, Zicam cold remedy, to a loss of smell for some users.  The Court emphasized that such a “categorical rule would otherwise be considered significant to the trading decision of a reasonable investor.”  As a result of the Court’s decision, those claims will now be going forward.  The case number is Matrixx Initiatives, Inc. v. Siracusano, 09-1156 (U.S. Mar. 22, 2011).

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

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