NEW YORK, July 20, 2009 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the District of Arizona on behalf of shareholders of Matrixx Initiatives, Inc. ("Matrixx" or the "Company") (Nasdaq:MTXX) between December 22, 2007 and June 15, 2009, (the "Class Period") for violations of the federal securities laws.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Matrixx securities during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so by September 15, 2009. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Sue Lee at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
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.