Matrixx Initiatives Inc. v. Siracusano Amicus Brief

The Ninth Circuit’s approach to the scienter requirement in this securities fraud action is well grounded in this court’s precedent. The conclusion that the actions of petitioner Matrixx Initiatives Inc. (“Matrixx”), as alleged in the complaint, give rise to a strong inference of scienter follows naturally from this court’s decision in Tellabs Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308 (2007). Allegations that Matrixx was aware of anecdotal and scientific evidence raising questions about a Zicam-anosmia link are sufficiently particularized to satisfy the pleading standard for securities fraud, and the assertion that the company sought to hide or refute this evidence with deliberate recklessness is at least as compelling as any plausible nonculpable explanation. … Back to Article