SEATTLE, July 24, 2009 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro, a class-action law firm specializing in securities litigation, is actively investigating possible securities law violations by Matrixx Initiatives, Inc. (Nasdaq:MTXX) on behalf of investors.
Matrixx markets Zicam products, popular over-the-counter cold remedies, and HBSS is investigating the company's reported failure to provide the Food and Drug Administration (FDA) with more than 800 reports relating to the loss of smell associated with the intranasal products.
In recent weeks, Matrixx has come under scrutiny regarding its Zicam products and the various side effects the cold remedies have on users.
"We believe investors suffered financial losses as a result of Matrixx's alleged failure to provide the FDA with accurate information regarding its cold products," said Reed Kathrein, partner at Hagens Berman Sobol Shapiro.
Trouble began for Matrixx when the FDA informed the company in June 2007, that it concluded certain Zicam products might pose serious health risks to consumers who use them. Upon release of the letter, Matrixx stock plummeted from about $19 per share to less than $7 per share.
The letter also informed Matrixx that the FDA was aware of more than 800 reports related to the loss of sense of smell associated with Zicam and directed Matrixx to "arrange submission of all reports" and "indicate which reports had been previously submitted to the FDA."
On July 23, 2009, Matrixx acknowledged that the Securities and Exchange Commission (SEC) launched an informal inquiry. Since December 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 one of our attorneys at Matrixx@hbsslaw.com or joining this investigation through the firm's Web site -- www.hbsslawsecurities.com/matrixx.htm.
About Hagens Berman Sobol Shapiro
Hagens Berman Sobol Shapiro, a law firm with offices in Seattle, San Francisco, Los Angeles, Boston, Chicago and Phoenix is active in major litigation pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Hagens Berman Web site (www.hbsslaw.com) has more information about the firm.