AP: Matrixx Stocks Fall After Zicam Lawsuits Announced
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From the Associated Press:
NEW YORK (AP) — Shares of Matrixx Initiatives Inc. fell Monday after the company disclosed several class action lawsuits related to its withdrawn cold treatment Zicam.
After the markets closed on Thursday ahead of the long holiday weekend, the Scottsdale, Ariz.-based company said it is aware of six class action lawsuits connected to Zicam. The company also has disclosed a personal injury lawsuit involving 117 plaintiffs.
The Food and Drug Administration advised consumers to stop using Zicam products in mid-June, because the zinc in Zicam swabs and gel may damage the sense of smell. Matrixx started a voluntary recall on June 24.
"The company intends to vigorously defend each of the recently filed lawsuits," Matrixx said in a filing with the Securities and Exchange Commission. It said it expects more lawsuits.
Matrixx disclosed lawsuits involving residents of Arizona, Illinois, California, Florida, Texas, Minnesota, Wisconsin and Missouri. It said the California suit "alleges, among other things, that the company concealed or omitted material information regarding the safety of the nasal gel products."
In afternoon trading, Matrixx shares fell 73 cents, or 11.3 percent, to $5.75. The stock has ranged from $4.39 to $19.74 over the past year.