REMS Daily Archives
Drugmaker Investor Lawsuits Backed by U.S. Supreme Court
Mar 23, 2011The U.S. Supreme Court, allowing a suit over a withdrawn cold remedy, gave shareholders more power to sue drugmakers and biotechnology companies for failing to reveal indications about dangerous side effects.
The justices unanimously said Matrixx Initiatives Inc. (MTXX), acquired in February by HIG Capital LLC, must defend against accusations that it should have told investors that some users of the Zicam nasal spray and gel had lost their sense of smell.
Matrixx argued that drugmakers need not say anything until reports of side effects become statistically significant. The high court today rejected that argument, saying that less definitive evidence in some cases is enough to require disclosure under the federal securities laws.
“Given that medical professionals and regulators act on the basis of evidence of causation that is not statistically significant, it stands to reason that in certain.
