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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

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In light of arguments before the Supreme Court concerning shareholders' complaint against Matrixx Initiatives, securities law attorneys advise firms not to rely on a statistical significance standard for disclosing reports of problems with a product.

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