Supreme Court allowed suit against Zicam maker to proceed

On March 22, 2011, the US Supreme Court ruled that a class action suit against the maker of Zicam Cold Remedy, Matrixx Initiatives, could continue. The suit was filed over shareholder claims that Matrixx failed to disclose potential harmful side effects of the drug. The Court held that this type of suit fell under the Securities Exchange Act of 1934 [PDF] because the company allegedly failed to inform investors of material information. This decision upheld the previous decision of the US Court of Appeals for the Ninth Circuit, which also ruled in favor of the shareholders. Matrixx stated that there was not enough conclusive evidence to reliably link use of the drug with the side effects alleged by the shareholders.

Learn more about the laws governing medications and class-action lawsuits from the JURIST news archive.


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