NEW YORK, July 13, 2009 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC is investigating reports of possible securities law violations by Matrixx Initiatives, Inc. (Nasdaq:MTXX), the makers of Zicam products, over the drug maker's reported failure to provide the Food and Drug Administration (FDA) with more than 800 reports relating to the loss of sense of smell associated with the Zicam Cold Remedy intranasal products.
On December 22, 2006, President Bush signed into Law the Dietary Supplement and Nonprescription Drug Consumer Act. The Act requires manufacturers, packers, and distributors whose name appears on the a nonprescription drug or dietary supplement product label to notify the FDA of any serious adverse event report associated with the product's use within 15 business day of receipt of such information. In mid June, the FDA through a letter advised consumers to stop using Zicam Products because of the zinc in Zicam swabs and gel may damage the sense of smell. According to the FDA, as of December 2007, Matrixx was required to provide such reports of adverse reaction to the agency.
Upon release of the news stated above, Matrixx stock plummeted from approximately $19 per share to less than $7 per share. Matrixx acknowledged that the Securities and Exchange Commission (SEC) is launching an informal inquiry on July 23, 2009. Since December of 2007, insiders, including the Executive VP and CFO, the VP of sales and the VP of Research and Development, have sold more than $2.7 million worth of Matrixx shares.
If you are aware of any facts relating to this investigation, or purchased shares of Matrixx since December 2007, you can assist this investigation by contacting either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email at eitan@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate work, private securities offerings, and securities arbitration.