Matrixx Initiatives pharmaceuticals news
The U.S. Supreme Court ruled unanimously on March 22 in Matrixx Inc., et al. v. Siracusano, et al. that adverse event reports may be material to investors even without statistical significance but that pharmaceutical manufacturers do not have to disclose all adverse event reports. Rather, the court said companies need to disclose reports that a reasonable investor would view as significantly altering the "total mix" of information made available.
The court also emphasized that the Securities Exchange Act of 1934 and U.S. Securities and Exchange Commission rules do not require the disclosure of all material information. Disclosure is required only when the omission of the information would make prior statements misleading. In Matrixx, the court found that the company should have disclosed information that plausibly indicated a reliable causal link between its Zicam Cold remedy, an OTC intranasal gel and spray, and loss of smell in some patients. The court said Matrixx's withholding of such information constituted "a material misrepresentation or omission" given the company's prior statements, such as guidance for an 80% increase in revenues. Zicam allegedly accounted for 70% of Matrixx's sales. ...