Updated: June 10, 2019 / 9:55 a.m.
On Monday, the U.S. Supreme Court agreed to hear Intel Corp’s bid to prevent a lawsuit which accuses them of violating federal law for making employee retirement plan investments that cost beneficiaries hundreds of millions of dollars.
The justices have decided to take on Intel’s appeal of a lower court ruling that revived the proposed class action lawsuit, initiated by a former employee back in 2015 after a judge agreed with the tech company that the litigation was filed too late.
The lawsuit accused the company’s committee that manages the retirement contribution and 401(k) savings plans, for breaching their fiduciary duty to the participants by placing an overly heavy emphasis on alternative investments like private equity and hedge funds.
The lawsuit was brought to attention by the former Intel engineer, Christopher Sulyma, in San Jose, California federal court.
The dispute revolves around the period when retirement plan participants had to file suit for alleged violations of the Employee Retirement Income Security Act (ERISA), a federal law that requires plan managers to invest prudently.
Last week, the justices took on separate retirement fund disputes involving the IBM Corp, agreeing to decide whether or not managers of a fund that invested in the company’s stock can be sued for failing to disclose that its microelectronics business was over-valued.