Chipmaker Intel Prevails in 401(k) Hedge Fund Investments Appeal

Intel Corp.'s retirement plan committee on Thursday defeated a challenge to the plan’s hedge fund and private equity investments, when the Ninth Circuit said the case wasn’t based on meaningful comparisons.

The lawsuit didn’t include allegations that the disputed investments in Intel’s plan underperformed other funds with similar goals, the US Court of Appeals for the Ninth Circuit said. Comparisons to “equity-heavy retail funds” that pursued different objectives aren’t enough to show that the Intel committee acted imprudently under the Employee Retirement Income Security Act, the appeals court said.

Fiduciary imprudence claims based on retirement investments typically require a ...