Bloomberg Law
Nov. 2, 2015, 5:00 AM

Intel 401(k) Participants Sue Over Hedge Fund Losses

Fiduciaries of Intel Corp.'s 401(k) plans were hit with a proposed class action alleging they breached their duties by investing a significant portion of the plans’ assets in risky and high-cost hedge funds and private-equity investments (Sulyma v. Intel Corp. Inv. Policy Comm.complaint filed).

The complaint, filed Oct. 29 in the U.S. District Court for the Northern District of California, alleges that the plans’ fiduciaries deviated significantly from professional investment norms when they dramatically altered the plans’ asset allocation models to invest in the hedge funds and private-equity investments.

As many as 100,000 Intel employees who participated in ...