Gerdau Ameristeel Sued Over 401(k) Plan Fees Paid to Fidelity

Gerdau Ameristeel US Inc. mismanages its $655 million 401(k) plan by overpaying for administrative services and allowing its plan recordkeeper to earn unfettered interest from plan assets, according to a proposed class action filed in Florida federal court.

Gerdau failed to rein in the recordkeeping fees charged by Fidelity Management Trust Co., which allegedly ballooned to more than $150 per person, per year, plaintiff Grant Molla said in a complaint filed Sept. 9 in the US District Court for the Middle District of Florida. Court filings in other cases show that Fidelity—which isn’t named as a defendant—values these services at ...