Reference no: EM131675724

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 sold shares during that time. Specifi cally, he argued that before October 2003, the company had found out one of its drugs had harmful side effects and such 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 not only to point out that Matrixx knew about the harmful effects of the drug before the period within which he bought his shares, but that there was a high statistical rate of the adverse side effect occurring. How do you think the case turned out?