Which of the following was the result at the Supreme Court level in Matrixx Initiatives, Inc. v. Siracusano, the case in the text in which the plaintiffs brought a class action alleging that the defendant violated securities laws by failing to release reports that its product, Zicam Cold Remedy, had been found to result in a loss of smell?

A) That the plaintiffs would not be allowed to proceed because they did not present statistically significant evidence that Zicam caused loss of smell.
B) That the plaintiffs would be allowed to proceed because they sufficiently pleaded scienter and also presented statistically significant evidence that Zicam caused loss of smell.
C) That under the "total mix" standard, the plaintiffs adequately pleaded materiality in regard to the alleged failure to disclose, the plaintiffs adequately pleaded scienter, and the plaintiffs would be allowed to proceed.
D) That under the "total mix" standard, the plaintiffs failed to sufficient plead materiality in regard to the alleged failure to disclose and therefore would not be allowed to proceed.
E) That although under the "total mix" standard, the plaintiffs pleaded materiality in regard to the alleged failure to disclose, the plaintiffs failed to sufficiently plead scienter and would therefore not be allowed to proceed.

Question

Maggie Champion · Accepted Answer

Final Answer : C, Explanation :  The Supreme Court in Matrixx Initiatives, Inc. v. Siracusano ruled that the plaintiffs had adequately pleaded materiality and scienter under the total mix standard, allowing the lawsuit to proceed. This decision emphasized that the plaintiffs did not need to present statistically significant evidence to claim that the failure to disclose adverse effects (loss of smell from using Zicam) was material to investors.

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