Nestlé Unit Aimmune Loses Bid to End Investors’ Suit Over Merger

Aimmune Therapeutics Inc. stockholders have the right to sue the company for alleged fraudulent activity in connection with a tender offer under federal securities law, a federal court ruled.

The US District Court for the Northern District of California said Nov. 18 that the suit over Aimmune’s 2020 merger with Nestlé Health Science SA could continue.

• Bruce Svitak and other investors alleged Nestlé, Aimmune’s biggest shareholder, made misrepresentations about Aimmune’s financial health.
• It bought the company, which was developing drugs to desensitize patients with common food allergies, at a steep discount, they say.
• Aimmune argued that investors lack a private ...