SOURCE: Shalov Stone Bonner & Rocco LLP

Shalov Stone Bonner & Rocco LLP

August 04, 2009 19:52 ET

Shalov Stone Bonner & Rocco LLP Announces Class Action Against Matrixx Initiatives, Inc.

NEW YORK, NY--(Marketwire - August 4, 2009) - Shalov Stone Bonner & Rocco LLP announces that a class action lawsuit has been filed on behalf of purchasers of Matrixx Initiatives, Inc. ("Matrixx" or the "Company") (NASDAQ: MTXX) stock between December 22, 2007 and June 15, 2009, inclusive (the "Class Period"). The lawsuit is pending in the United States District Court for the District of Arizona, and names as defendants the Company and certain of its top officers and/or directors.

Through its subsidiary, Matrixx develops, produces, markets and sells over-the-counter healthcare products, including Zicam Cold Remedy Products. The complaint alleges that, throughout the Class Period, the defendants violated the federal securities laws by misrepresenting and failing to disclose material adverse facts that were known to the defendants or recklessly disregarded by them. More specifically, the complaint alleges that the defendants failed to disclose: (1) that Matrixx had received notice of hundreds of serious adverse events regarding 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 FRA regulations were false and misleading when made. On June 16, 2009, Matrixx revealed that it had received a warning letter from the FDA and that it would be withdrawing the Zicam Cold Remedy Products from the market. Following this announcement, the price of Matrixx stock fell approximately 70%.

Shalov Stone Bonner & Rocco LLP has extensive experience in the prosecution of class actions on behalf of investors. For more information about the firm, please visit its website at: www.lawssb.com

If you would like additional information about the lawsuit or would like to participate in it, please contact investor rights attorney Amanda C. Scuder, at Shalov Stone Bonner & Rocco LLP, 485 Seventh Avenue, Suite 1000, New York, New York 10018 (telephone: (212) 239-4340; email: ascuder@lawssb.com).

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