Zicam Maker Pays $4.5M To Snuff Stock Fraud Suit

Law360, New York (February 4, 2013, 5:42 PM EST) -- Matrixx Initiatives Inc. will dole out $4.5 million to settle a suit claiming its failure to alert the government to complaints that its Zicam cold remedy products allegedly caused users to lose their sense of smell sparked a free fall in its stock price, according to a motion filed Thursday.

The settlement resolves claims by a certified class of investors who bought or sold the drugmaker's stock between December 2007 and June 2009, when the U.S. Food and Drug Administration issued a public health advisory that...
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