Zicam side effects may impact manufacturer's earnings in advance of court date

A class action lawsuit concerning Zicam side effects may affect more than just buyers, as investors in the cold remedy manufacturer were recently reminded.

The FDA has linked Zicam with a loss of smell, prompting a recent recall of all related products made by Matrixx Initiatives, and plaintiffs who join in the class action proceedings may be able to obtain damages that directly impact the investments made by private individuals in the firm, according to a release issued by several lawyers.

When news was first reported that the remedy would be pulled from the market, the company's share price tumbled to nearly one-quarter of its previous value because of fears over Matrixx's ability to remain profitable. These investors may represent the second group affected by the company's alleged failure to disclose information about its products.

Those affected by Zicam smell loss effects may also be able to receive damages. In Minnesota state court, a finding was recently issued that stated people affected by the treatment would still be able to accrue claims developed before the new limitations act in 2004. Zicam was first marketed several years before that date.