In February a former employee of Hormel Foods filed a lawsuit against the Board of Directors of Hormel Foods alleging mismanagement of the company retirement plan. A Federal court in the District of Minnesota has rejected a motion by Hormel for dismissal, allowing the case to proceed.
The claimant maintains that Hormel directors deviated from their “fiduciary duty of prudence” by including equities with high risk in the $1.2 billion retirement plan. 
While the outcome of this case will not affect the ongoing operations of Hormel Foods, disaffection of employees may result if the allegations are substantiated.