9th Circ. Revives Matrixx Zicam Shareholder Action

Law360, New York (October 28, 2009, 7:13 PM EDT) -- A federal appeals court has reinstated a class action accusing Matrixx Initiatives Inc. of concealing from investors hundreds of consumer reports claiming cold medication Zicam caused users to lose their sense of smell.

In a ruling Wednesday, the U.S. Court of Appeals for the Ninth Circuit reversed and remanded the lawsuit, which targets Matrixx, CEO Carl Johnson, Chief Financial Officer William Hemelt and Vice President Timothy Clarot.

The U.S. District Court for the District of Arizona had previously granted the defendants’ bid to throw out the...
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