Item 8.01 Other Events.
Securities Litigation
On October 28, 2009, the United States Court of Appeals, Ninth Circuit, issued its opinion in the Siracusano, et. al. vs. Matrixx Initiatives, Inc., et. al., Case No. 2:04-CV-866. (See the Company's Quarterly Report on Form 10-Q filed August 10, 2009, "Notes to Consolidated Financial Statements (Unaudited), Note 7
- Legal Proceedings.") The Court of Appeals reversed the decision of the United States District Court, District of Arizona, which had dismissed the case. The case will now proceed in the District Court unless the Company determines to seek a review of the Court of Appeals' decision. The Company is currently evaluating its options. Recall Related Litigation
On October 27, 2009, the Company agreed to terms to settle its litigation with Capricorn Pharma, Inc. ("Capricorn"), a former manufacturer of certain of the Company's oral delivery Cold Remedy products. Litigation between the Company and Capricorn related to claims by the Company for the recovery of expenses incurred in connection with Capricorn's recall, in June 2008, of certain lots of products, and claims by Capricorn for infringement of certain intellectual property rights claimed by Capricorn (See the Company's Quarterly Report on Form 10-Q filed August 10, 2009, "Notes to Consolidated Financial Statements (Unaudited), Note 7 - Legal Proceedings"). In connection with the settlement, Capricorn agreed to pay the Company $350,000 as reimbursement for recall-related expenses and granted the Company a limited license to certain of Capricorn's patents. In addition, the Company will retain ownership of the RapidMelts trademark for its products, although Capricorn will be able to use the mark RapidMelt for its non-cold remedy products now, and beginning after a period of three years from the settlement date, in connection with cold remedy products.

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