From October 2003 to February 2004, James Siracusano purchased thousands of Matrixx Initiatives Inc. shares. After purchasing
Question:
From October 2003 to February 2004, James Siracusano purchased thousands of Matrixx Initiatives Inc. shares. After purchasing the shares, Siracusano argued that the company had violated the Securities and Exchange Act of 1934 when it had sold him those shares. Specifically, he argued that before October 2003, the company had found out that one of its drugs had harmful side effects, and this information was not released. The drug, Zicam, had allegedly been systematically leading to a permanent loss of smell. However, to win his case, Siracusano needed to not only point out that Matrixx knew about the harmful effects of the drug before the period within which he bought his shares, but also that there was a high statistical rate of the occurrence of the adverse side effect. How do you think the case turned out? [Matrixx Initiatives v. Siracusano, 131 S. Ct. 1309 (2011).]
Step by Step Answer:
Dynamic Business Law The Essentials
ISBN: 978-1259917103
4th edition
Authors: Nancy Kubasek, Neil Browne, Daniel Herron