Intel Loses Appeal Over Alternative Investments in 401(k) Plans

Intel Corp. suffered a significant loss when a federal appeals court revived a lawsuit challenging the company’s decision to allow alternative investment options in its 401(k) plan.

The district court pre-trial judgment in Intel’s favor—based on a finding that the investor had sufficient information available to him to know about the allegedly imprudent investments three years before he sued—is wrong, the U.S. Court of Appeals for the Ninth Circuit held Nov. 28.

The investor in Intel’s 401(k) plan was required to have actual knowledge both that the investments occurred, and that they were imprudent, the judges said. The investor, ...