The manufacturer of Zicam allergy and cold medicines agreed to pay nearly $429,000 to settle a consumer protection lawsuit brought by Los Angeles and four other counties, alleging misleading packaging of the company's products.
The complaint filed Nov. 30 alleged that Matrixx Initiatives Inc., based in Scottsdale, Ariz., sold its products in packages with extra space, misleading consumers regarding the actual size of the over-the counter medications, said Jane Robison of the Los Angeles County District Attorney's Office.
The company agreed to the settlement without admitting liability, said Los Angeles-based Deputy District Attorney Stuart C. Lytton of the Consumer Protection Division.
The district attorneys of Sacramento, Fresno, Shasta and Riverside counties joined in the lawsuit.
"Matrixx Initiatives Inc. does not believe its packaging violated California regulations. However, to avoid litigation Matrixx determined to compromise and settle the matter," said company spokeswoman Sarah Ingram. "As part of the settlement, Matrixx agreed to pay a fine and modify the size of its packaging in the future."
In 2006, the company agreed to pay $12 million to settle more than 300 lawsuits brought by consumers claiming the zinc nasal gel sold as Zicam Cold Remedy caused damage or loss of smell.