ZICAM

Large Zicam Class-Action Suit Settled

On January 19, 2006, Matrixx Initiatives Inc., of Phoenix, Arizona, announced that it had agreed to settle a consolidated product liability suit by people who alleged that its Zicam Cold Remedy Nasal Spray had caused loss or decrease of their senses of smell and taste. (As of January 18th there were 49 different lawsuits pending that involved about 400 individuals.) The agreement called for payment of $12 million to fund awards to about 340 of the plaintiffs. The company said that it expected that about 40% of the settlement will be covered by insurance. The settlement does not include 22 plaintiffs who used Zicam’s nasal swab product and 39 plaintiffs in 32 suits pending in courts outside of Arizona. The company denies being at fault …