METAIRIE, La., June 18, 2009 (GLOBE NEWSWIRE) -- The Law Offices of Eric J. O'Bell, LLC ("O'Bell") announce its investigation into Matrixx Initiatives, Inc., ("Matrixx" or the "Company") (Nasdaq:MTXX) to determine whether it has violated federal securities laws by issuing materially false and misleading statements to shareholders.
Matrixx, an over-the-counter healthcare company, was warned on Tuesday by the U.S. Food and Drug Administration to stop selling intranasal versions of its Zicam cold remedy. The FDA also warned consumers not to use the products after more than 130 people reportedly lost their sense of smell. The FDA said Matrixx must seek approval if it wants to continue selling its Zicam zinc products that are administered via the nose, a process the acting president and chief operating officer of Matrixx said would take years and be "highly expensive."
Since that time, the Company withdrew earnings forecasts for the year and losses seen from fewer sales could cost the company as much as $10 million.
Following disclosure that the Company's Zicam nasal products were not safe and effective as the Company had previously represented in its marketing materials and financial filings, on June 16, 2009 shares of Matrixx collapsed -- falling over 70% in the single trading day.
If you are a Matrixx shareholder, and/or have information that would assist in this ongoing investigation, or have other questions relating to a loss you've suffered in your investment, you may contact Eric J. O'Bell directly without obligation or cost to you at 504-456-8677; or by email to ejo@obelllawfirm.com.