Robbins Geller Wins Unanimous Decision from U.S. Supreme Court
In a unanimous opinion written by Justice Sotomayor, the Court affirmed the decision of the Ninth Circuit that plaintiffs stated a claim for securities fraud under §10(b) of the Securities Exchange Act and SEC Rule 10b-5. Plaintiffs alleged that Matrixx Initiatives, Inc. and three of its executives failed to disclose reports of a causal link between the company's leading product, a cold remedy, and loss of smell, rendering statements made by defendants misleading. The Supreme Court rejected Matrixx's assertion that the complaint did not allege material misrepresentations or scienter because plaintiffs did not allege defendants knew of a statistically significant number of adverse events requiring disclosure. As National Economic Research Associates, Inc. concluded: "Class plaintiffs won a favorable Supreme Court ruling . . . in Matrixx Initiatives, Inc. v Siracusano." Dr. Jordan Milev, Robert Patton & Svetlana Starykh, Recent Trends in Securities Class Action Litigation: 2011 Mid-Year Review (NERA July 26, 2011). Robbins Geller is sole lead counsel representing plaintiffs and the class in Siracusano v. Matrixx Initiatives, Inc., No. 04-0886 (D. Ariz.).
The opinion is available on the Supreme Court's web site: