The Supreme Court Considers the Materiality Requirement in the Context of Drug Companies’ Disclosure of Adverse Event Reports
The Supreme Court heard oral arguments yesterday in Matrixx Initiatives, Inc. v. Siracusano, No. 09-1156, a securities fraud case in which the Court is expected to address the question of whether pharmaceutical company Matrixx Initiatives, Inc. was required to disclose reports of adverse events following the use of its cold remedy product even though the reports are not alleged by the plaintiffs to have been statistically significant. Although the question presented is limited, in deciding this case, the Court may provide more general insight into the analysis lower courts should employ in evaluating the materiality of alleged misstatements or omissions at the motion to dismiss stage.