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Matrixx Initiatives, Inc. v. Siracusano

Docket No.: 09-1156
Certiorari Granted: 06/14/10
Argued: January 10, 2011
Decided: 03/22/11

Topics:

Federal Regulation of Securities, Private Securities Litigation Reform Act of 1995

PartyNames: Matrixx Initiatives, Inc., et al. v. James Siracusano, et al.
Petitioner: Matrixx Initiatives, Inc., et al.
Respondent: James Siracusano, et al.

Court Below: United States Court of Appeals for the Ninth Circuit
Citation: 585 F.3d 1167
Supreme Court Docket

Matrixx Initiatives, Inc., et al.
v.
James Siracusano, et al.
Background:

Respondents filed suit under § 10(b) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5, alleging that petitioners committed securities fraud by failing to disclose "adverse event" reports--i.e., reports by users of a drug that they experienced an adverse event after using the drug. The First, Second, and Third Circuits have held that drug companies have no duty to disclose adverse event reports until the reports provide statistically significant evidence that the adverse events may be caused by, and are not simply randomly associated with, a drug's use. Expressly disagreeing with those decisions, the Ninth Circuit below rejected a statistical significance standard and allowed the case to proceed despite the lack of any allegation that the undisclosed adverse event reports were statistically significant.

Question Presented:

Whether a plaintiff can state a claim under § 10(b) of the Securities Exchange Act and SEC Rule 10b-5 based on a pharmaceutical company's nondisclosure of adverse event reports even though the reports are not alleged to be statistically significant.

Question:

Can a plaintiff state a claim under the Securities Exchange Act based on a pharmaceutical company's non-disclosure of adverse event reports even though the reports are not alleged to be statistically significant?

Matrixx Initiatives, Inc. v. Siracusano
ORAL ARGUMENT

01/10/11

Listen to Oral Argument in Matrixx Initiatives, Inc. v. Siracusano
Holding: affirmed
Vote: 9-0
Opinion By:
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