Gerdau Ameristeel Faces Setback in Defending 401(k) Plan Fees

Gerdau Ameristeel US Inc.'s effort to avoid discovery and secure a favorable judicial review standard over its retirement plan management hit a speedbump Wednesday, when a federal magistrate judge recommended denying the steel producer’s motions.

Gerdau improperly collapsed the distinction between claims for plan benefits and claims for fiduciary breach under the Employee Retirement Income Security Act, Magistrate Judge Sean P. Flynn of the US District Court for the Middle District of Florida said in a nonbinding report. The claims are distinct even though the US Court of Appeals for the Eleventh Circuit has treated them similarly in certain ...