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Matrixx Decision Raises More Disclosure Questions – Law Professor

This article was originally published in The Tan Sheet

Executive Summary

The Supreme Court's decision in the lawsuit alleging Matrixx Initiatives fraudulently withheld adverse event reports from investors provides little guidance for pharmaceutical and dietary supplement firms on disclosing adverse events, an expert says.

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Supreme Court's Matrixx Decision Expands Firms' Disclosure Burden

The Supreme Court's decision in a complaint shareholders brought against Matrixx Initiatives lowers the threshold for when firms need to disclose information, but also aims to prevent an "avalanche of trivial information."

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