Regulatory & Compliance | 10.06.26

Supreme Court Sounds Skeptical of Challenge to Private Equity in 401(k)s

by: Chris Cumming

The U.S. Supreme Court appeared inclined to uphold a lower-court dismissal of a lawsuit challenging Intel’s inclusion of private equity and hedge funds in its 401(k) plan. The case centers on whether employees must demonstrate underperformance against an appropriate benchmark to sue employers for fiduciary violations. Several justices questioned the plaintiff’s arguments, potentially strengthening Wall Street’s efforts to expand alternative investments in retirement accounts. A ruling for Intel could reduce employers’ exposure to class-action lawsuits, while a ruling for the employee could make such challenges easier.

Read the full article on WSJ Pro Private Equity