Fiduciaries on Intel Corp.'s investment policy committee are being sued in United States District Court for the Northern District of California for directing hundreds of millions of participant 401(k) assets to hedge fund and private equity investments in the company's customer target-date fund.

The suit also alleges participants in the company's customized Global Diversified Fund were exposed to asset allocation models that "departed dramatically from prevailing standards employed by professional investment managers and plan fiduciaries," according to court documents.

That Global Diversified Fund was the sole investment option to the "overwhelming majority" of participants in the plan, the claim alleges.