Key Developments: Matrixx Initiatives (MTXX.O)
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9 Feb 2010
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Latest Key Developments
Matrixx Initiatives, Inc. Issues FY 2010 Revenue Guidance In Line With Analysts' Estimates; Comments On H2 2010 Earnings Guidance
Matrixx Initiatives, Inc. announced that due to the loss of nasal Cold Remedy product sales, the Company is executing operating plans that reflect fiscal 2010 revenue in the $65-$70 million range. In addition, due to increased marketing between November and March and higher legal expense, the Company expects to incur a net loss in the second half of 2010. According to Reuters Estimates, analysts on an average are expecting the Company to report revenues of $67 million for fiscal 2010.
FDA unwilling To Change Stance On Matrixx Initiatives, Inc.'s Zicam
Reuters reported that U.S. health regulator has indicated that it is unwilling to reverse its position regarding the warning letter issued on Matrixx Initiatives, Inc.'s nasal versions of Zicam cold remedy. The FDA also identified several individual cases where the regulator indicated the Company should have filed serious adverse event reports.
Matrixx Initiatives, Inc. Names William J. Hemelt President And Chief Executive Officer
Matrixx Initiatives, Inc. announced that Matrixx's Board of Directors has named William J. Hemelt as President and Chief Executive Officer (CEO), effective August 28, 2009. Mr. Hemelt was also elected to the Company's Board of Directors, effective as of that same date.
Matrixx Initiatives, Inc. Withdraws FY 2010 Guidance
Matrixx Initiatives, Inc. announced that the FDA Warning Letter has had a material adverse impact the Company's business and generated publicity. The recall of two products has required to take impairment charges, record reserves for customer returns and withdraw sales and earnings guidance for fiscal 2010.
Shalov Stone Bonner & Rocco LLP Announces Class Action Against Matrixx Initiatives, Inc.
Shalov Stone Bonner & Rocco LLP announced that a class action lawsuit has been filed on behalf of purchasers of Matrixx Initiatives, Inc. 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.
Bronstein, Gewirtz & Grossman, LLC Announces Class Action Suit Against Matrixx Initiatives, Inc.
Bronstein, Gewirtz & Grossman, LLC announced 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., during the period from December 22, 2007 through and including June 15, 2009 (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 Initiatives, Inc. was required to provide such reports of adverse reaction to the agency.
Kendall Law Group Announces Securities Class Action Against Matrixx Initiatives, Inc.
Kendall Law Group, led by a former federal judge and U.S. Attorney, announced that a securities class action has been filed against Matrixx Initiatives, Inc. on behalf of investors who purchased stock at artificially inflated prices between December 22, 2007 and June 15, 2009. According to the complaint, filed in the United States District Court for the District of Arizona, defendants failed to disclose that: (1) the Company had received notice of hundreds of serious adverse events involving consumers' use of the Zicam Cold Remedy Products; (2) the Company failed to report these incidents to the FDA; (3) the Company failed to comply with FDA regulations despite repeated assurances of its compliance. On June 16, 2009, the Company disclosed that it had received a warning letter from the FDA and would withdraw its Zicam Cold Remedy Products from the market. By September 15, 2009, the Company shareholder must move for lead plaintiff. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action.
Sarraf Gentile LLP Announces Lawsuit Against Matrixx Initiatives, Inc.
Sarraf Gentile LLP announced that on July 17, 2009, a class action lawsuit was filed against Matrixx Initiatives, Inc. and its top officers. The complaint was filed in the United States District Court for the District of Arizona and seeks damages for violations of the federal securities laws on behalf of all investors who purchased Matrixx stock between December 22, 2007 and June 15, 2009, inclusive. According to the complaint, defendants failed to disclose material adverse facts concerning the Company's operational well being and future prospects. Specifically, the complaint alleges that 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 Matrixx failed to comply with FDA regulations despite repeated assurances of its compliance; and (4) that, as a result of the foregoing, defendants' statements about meeting FDA regulations were false and misleading. On June 16, 2009, Matrixx disclosed that it had received a warning letter from the FDA and would withdraw its Zicam Cold Remedy Products from the market. On this news, the price of Matrixx stock fell roughly 70%.
Faruqi & Faruqi, LLP Announces Filing Of Class Action Lawsuit Against Matrixx Initiatives, Inc.
Matrixx Initiatives, Inc. announced that a notice is hereby given that a class action lawsuit was commenced in the United States District Court for the District of Arizona on behalf of all purchasers of the common stock of the Company between December 22, 2007 and June 15, 2009, inclusive (the Class Period). The complaint alleges that defendants issued a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. Specifically, the Complaint alleges defendants failed to disclose: (1) that the Company had received notice of hundreds of serious adverse events involving consumers' use of the Company's Zicam line of cold remedy products (Zicam); (2) that the Company 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.
Izard Nobel LLP Announces Class Action Lawsuit Against Matrixx Initiatives, Inc.
The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announced that a lawsuit seeking class action status has been filed in the United States District Court for the District of Arizona on behalf of those who purchased the securities of Matrixx Initiatives, Inc. between December 22, 2007 and June 15, 2009, inclusive (the Class Period). The Complaint charges that the Company and certain of its officers and directors violated federal securities laws. the Company, through its subsidiary, produces, markets and sells Zicam Cold Remedy Products.
UPDATE 1-Matrixx Q3 profit down; oral cold products sales up
Jan 25 (Reuters) - Matrixx Initiatives Inc said sales of its oral cold remedy products grew 62 percent in the third quarter and offset some of the losses from the withdrawal of its nasal cold remedy products, sending its shares up about 11 percent after the bell.
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