Last week, Matrixx Initiatives Inc. got one step closer to getting past the frenzy of personal injury and product liability lawsuits filed against the company. Matrixx, a drug manufacturing company in Phoenix, has made a large part of its profits from the sale of the once popular, over-the-counter Zicam products.

Zicam is a nasal spray used to ease cold systems, but some consumers who depended on the drug were surprised to find that the use of the nasal spray led to the loss of smell or taste. According to sources, Matrixx was facing more than 230 product liability lawsuits by the beginning of this month.

But last Thursday, Matrixx put a small dent in the amount of lawsuits filed against the company and agreed to settle several cases claiming economic injury.

A judge still has to okay the details of the settlement between the Arizona company and the plaintiffs of the 18 class action lawsuits. If the settlement is approved by the court, then Matrixx will pay the plaintiffs no more than $35,000 and also pay for plaintiffs' attorney and court fees.

The plaintiffs involved in this settlement went after Matrixx because they argue that the company misrepresented their Zicam products. In response to that complaint, Matrixx promised as part of the settlement that if the company ever gets the products back on the market, then more details about the products would be included on the packaging.

As mentioned earlier, last week's settlement is just the beginning of a long line of product liability lawsuits filed against Matrixx. Sources report that almost 800 plaintiffs are going after the company because they claim Zicam use resulted in damaging their senses of smell and/or taste.

The FDA warned consumers about the risks involved with Zicam use last summer, and in order for Matrixx to sell the drug in the future, the FDA will have to approve its safety.

Resource

Reuters: UPDATE 2-Mattrix to settle certain suits related to cold remedy (8/20/2010)