Steel Dynamics Sued Over PIMCO Target Date Funds in 401(k) Plan

Steel Dynamics Inc. was sued by three former employees who say the Indiana steel producer mismanages its $2 billion 401(k) plan by offering pricey and poorly performing investment options.

The lawsuit, filed Tuesday on behalf of a proposed class of about 10,000 people, claims the Steel Dynamics 401(k) plan is full of “chronically underperforming” target date funds from PIMCO, which isn’t named as a defendant.

These funds were added to the plan in 2020 despite “many years” of subpar performance history, and they cost plan participants millions of dollars in lost retirement savings, the employees said in a ...