Why IntelliJ gives red errors when source compiled fine?

Just for the convenience of other community members here's the minimal sample:

    public static void main(String[] args) {
        new FooGenerator().process(Foo.class);
    }

    public static abstract class AFoo {}

    public static class Foo extends AFoo {}

    public static class FooGenerator<T> {
        public void process(Class<AFoo> cls) {}
    }

The code is compilable, but IntelliJ IDEA highlights red:

This sample is rather tricky. For example if you remove generic from FooGenerator class this code won't be compilable and IDE's highlighting will become correct, although such a change touches neither process() method signature nor its invocation. So probably original compilable code is a bug of Java compiler.
The best way to get both compilable and 'green' code in the IDE is to define process() method like this:

 public void process(Class<? extends AFoo> cls) {}

Hi Alex,

I already mentioned that I can't modify the source due to politic reasons. As I said, leave the "bad code" aside, the IntelliJ should NOT give me red errors when the code compiled without problems. To me it's an IDE bug.

http://youtrack.jetbrains.com/issue/IDEA-97952