Matrixx Initiatives, Inc. v. Siracusano: U.S. Supreme Court Rejects "Statistical Significance" as Threshold for Required Disclosure of Adverse Event Reports

Summary: Is a manufacturer of a product effectively shielded from securities fraud claims if it fails to disclose adverse events associated with a key product unless the number of events is statistically significant? Presented with this proposition in Matrixx Initiatives, Inc. v. Siracusano, the U.S. Supreme Court unanimously declined to recognize such a bright-line rule. The attached Client Alert provides background on the case, and analyzes the Court’s decision and the impact on disclosure obligations.