Matrixx Initiatives (MTXX) Will Vigorously Defend Itself Against Lawsuits
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Following the warning letter issued by the FDA regarding Zicam Cold Remedy nasal gel products, Matrixx Initiatives (Nasdaq: MTXX) announced that it expected additional lawsuits would be filed against the Company, which has been the case.
On June 22, 2009, a personal injury lawsuit was filed against the Company involving 117 plaintiffs who allege that the Company’s Zicam Cold Remedy nasal gel products have caused the permanent loss or diminishment of the sense of smell or smell and taste. Marilyn Adams et al. vs. Matrixx Initiatives, Inc., et al., Superior Court of the State of Arizona, Maricopa County.
On June 23, 2009, an economic class action lawsuit was filed against Matrixx Initiatives, purportedly on behalf of all persons who purchased Zicam Cold Remedy nasal gel products while in California or from a source in California within the four years prior to June 23, 2009.
The Company’s Position
The Company intends to vigorously defend each of the recently filed lawsuits.
As previously announced, the Company strongly disagrees with the FDA’s allegations that Zicam Cold Remedy nasal gel products are unsafe and that they were unlawfully marketed. However, the Company is conducting a recall of its Zicam Cold Remedy nasal gel products because of its desire to cooperate with the FDA. Soon, the Company will formally respond to the FDA’s warning letter and will request a meeting with the FDA to present comprehensive scientific and medical data and analyses demonstrating that these products are not unsafe.
There is no known causal link between the use of Zicam Cold Remedy nasal gel and impairment of smell or smell and taste. To date, no plaintiff has ever won a product liability case against Matrixx Initiatives on those grounds. The Company believes that upper respiratory infections and nasal and sinus disease are the causes of the smell dysfunctions reported by some consumers. One of the most common causes of smell disorders is the cold itself, the very condition our product is used to treat. Other causes are sinusitis and rhinitis, conditions that are sometimes present when our product is used.
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Matrixx Class Action
The company may be digging a deeper legal hole for itself by continuing to claim it has never lost a suit, while not disclosing that it paid $12 million to settle 300 suits in 2006. The domain (web address) MatrixxClassAction.com has been set up and is for sale to any law firm eager to attract consumers or investors who want to discuss whether their claimis against Matrixx are actionable.
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Edwards, are you commenting or selling?
skeptic on Jul 2, 2009 07:30 PMObviously, edwards, you bought that domain and are trying to market it. Don't confuse settling frivilous class-action suits with losing a court case! Are you that naive? Settlements are a painful reality for any business - even those who have done nothing wrong! I used Zicam for nearly 10 years with no side effect - other than NOT GETTING SICK! Now it's off the shelf because the FDA and government is out of control. Crazy. Just Crazy.