According to a press release dated July 17, 2009, the complaint was filed in the United States District Court for the District of Arizona and seeks damages for violations of federal securities laws on behalf of all investors who purchased Matrixx stock between December 22, 2007 and June 15, 2009, inclusive (the "Class Period"). Matrixx is a nutrient and drug delivery company that develops, manufactures and markets delivery systems for bioactive compounds. The Company, through its subsidiary, produces, markets and sells, among other pharmaceutical products, Zicam Cold Remedy nasal gel, Zicam Cold Remedy gel swabs, and Zicam Cold Remedy children's swabs.
The Complaint alleges that, throughout the Class Period, Defendants failed to disclose material adverse facts concerning the Company's operational well-being and future prospects. Specifically, Defendants failed to disclose or indicate (1) that Matrixx had received notice of hundreds of serious adverse events involving consumers' use of the Zicam Cold Remedy Products; (2) that Matrixx failed to report these incidents to the FDA despite having an obligation to do so; (3) that the Company failed to comply with FDA regulations despite repeated assurances of its compliance; and (4) that, as a result of the foregoing, the Company's statements about its meeting FDA regulations were false and misleading when made.
As a result of this news, the Company's shares declined $13.46 per share, or an astounding 70 percent, to close on June 16, 2009 at $5.78 per share, on unusually heavy trading volume.
On July 27, 2010, an order was issued by the court appointing lead plaintiff and lead counsel in the in this action.
On September 27, 2010, an Amended Class Action Complaint was filed by the lead plaintiffs against the defendants.
On September 26, 2011, the Defendants’ Motion to Dismiss the Plaintiffs’ Amended Class Action Complaint was Denied.
On July 31, 2012, the plaintiffs’ motion to certify class, appoint lead plaintiff as class
representative, and appoint class counsel was granted.
On September 6, 2012, an Order Regarding Class Certification Notice Procedures was issued by the Court.
On October 19, 2012, the parties participated in a mediation before Judicial Mediation Arbitration Services and the parties reached an agreement in principle regarding the settlement of this case. The parties are currently working to prepare the formal settlement papers to be submitted to the Court for approval.
On November 13, 2012, an Order was issued by the Court dismissing this case with prejudice until further notice, unless there is a request for reinstatement on the Court’s trial calendar is filed herein.
On January 29, 2013, the Parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on May 1.
On September 6, 2013, the Court issued an Order awarding attorneys' fees and expenses. The Court also issued a Final Judgment approving the Settlement and ordering this case dismissed with prejudice.