Kraft Heinz Loses Bid to Toss Investor Suit Over Merger Fallout

Kraft Heinz Co. must face accusations it misled investors about the benefits of the 2015 merger that created the company after a federal judge in Illinois found the allegations sufficient to move to the next stage.

Investors properly alleged the food and beverage giant—which formed when Kraft Foods Group Inc. merged with The H.J. Heinz Co.—made materially false and misleading statements about post-merger operations, acted intentionally or recklessly, and caused their securities to lose value, the U.S. District Court for the Northern District of Illinois said.

Kraft Heinz argued that some statements the investors challenged aren’t actually actionable because ...