SOURCE: Bronstein, Gewirtz & Grossman, LLC

August 04, 2009 11:29 ET

Bronstein, Gewirtz & Grossman, LLC Announces That a Class Action Has Been Filed Against Matrixx Initiatives, Inc.

NEW YORK, NY--(Marketwire - August 4, 2009) - Bronstein, Gewirtz & Grossman, LLC announces that a class action has been filed in the United States District Court for the District of Arizona on behalf of those who purchased or otherwise acquired stock of Matrixx Initiatives, Inc. (NASDAQ: MTXX), during the period from December 22, 2007 through and including June 15, 2009 (the "Class Period").

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. 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.

No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. September 15, 2009 is the deadline for investors to seek a lead plaintiff appointment.

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.

Contact Information

  • Contact:
    Peretz Bronstein or
    Eitan Kimelman
    Bronstein, Gewirtz & Grossman, LLC
    212-697-6484
    Email Contact