Gerdau Ameristeel has agreed to settle a proposed class action lawsuit that alleged the steel manufacturer’s 401(k) plan burdened employees with unreasonable fees and risky investment options, according to a Wednesday filing in Florida federal court.
Plaintiff Grant Molla, who led the lawsuit, notified the court that he and Gerdau Ameristeel US Inc. reached a settlement during mediation on Tuesday. He requested two weeks to submit a motion for court approval of the agreement.
The resolution follows U.S. District Judge Virginia M. Hernandez Covington’s Jan. 25 order granting Gerdau’s motion to dismiss the lawsuit without prejudice. The judge ruled that Molla had failed to properly outline how he raised his concerns with the 401(k) plan committee before filing the lawsuit.
Allegations Against Gerdau Ameristeel’s 401(k) Plan
Molla filed the lawsuit in September 2022, targeting Gerdau Ameristeel, the U.S. subsidiary of Brazilian steel giant Gerdau. His complaint alleged that the company’s retirement plan, which had nearly 4,300 participants and $655 million in assets as of December 31, 2020, was mismanaged.
