Matrixx Opens Door For Plaintiffs, But Only A Crack

Law360, New York (March 22, 2011, 7:09 PM EDT) -- The U.S. Supreme Court ruled Tuesday that drug companies must disclose adverse event reports if they could affect the company's share price, a decision attorneys say could make it more difficult for companies to defeat securities complaints at the pleading stage.

In a unanimous opinion written by Justice Sonia Sotomayor, the high court ruled that any adverse event reports that alter the “total mix” of information available to investors must be disclosed by drug companies, rejecting a rule proposed by Matrixx Initiatives Inc. that only statistically...
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