Matrixx agrees to settle Zicam cold remedy suits

PHOENIX

Matrixx Initiatives has agreed to settle lawsuits over its Zicam cold remedy, the company said Friday, which it withdrew from the market in June following a safety warning from federal regulators.

In June, the Food and Drug Administration told consumers should stop using Zicam Cold Remedy nasal gel and related products because they can permanently damage the sense of smell. Under the proposed settlement, the company agreed to add potential side effect warnings if the products return to the market. There are 18 class action lawsuits outstanding in federal courts.

The company would be required to pay the plaintiffs' attorneys fees and costs for the litigation, as determined by the court. Matrixx would also pay incentive awards to the named plaintiffs in an aggregate amount not to exceed a total of $35,000 and be responsible for the costs of providing notice of the settlement.

Matrixx, based in Phoenix, would acknowledge no wrongdoing as part of the settlement.

The company said it will better be able to manage hundreds of product liability claims for personal injuries that are still pending.

Shares of Matrixx Initiatives Inc. rose 37 cents, or 8 percent, to $4.97 Friday.