If you were a participant in the Gerdau Ameristeel US, Inc. 401(k) Retirement Savings Plan, you may have recently heard about a class action settlement. This legal development, known as Grant Molla v. Gerdau Ameristeel US, Inc., addresses concerns regarding the management and fees of the company’s retirement plan. Many former and current employees are now looking for clear information on how this affects their retirement savings and what steps they need to take to receive their portion of the settlement funds.
Understanding class action settlements can be complex, especially when they involve retirement accounts like a 401(k). This guide provides a straightforward breakdown of the Gerdau settlement, including eligibility requirements, payment timelines, and actionable steps to ensure you receive any money owed to you. Whether you are an active employee or have moved on to a different company, this information will help you navigate the process with confidence.
What Is the Gerdau 401(k) Settlement?
The settlement stems from a lawsuit filed in the United States District Court for the Middle District of Florida. The plaintiffs, representing a class of plan participants, alleged that Gerdau Ameristeel US, Inc. breached its fiduciary duties under the Employee Retirement Income Security Act (ERISA). Specifically, the lawsuit claimed that the plan administrators allowed for excessive administrative and investment management fees, which negatively impacted the retirement savings of employees.
By reaching a settlement, the company does not admit to any wrongdoing. Instead, both parties agreed to a financial resolution to avoid the costs and uncertainty of a prolonged trial. The court approved the settlement on July 8, 2025, clearing the way for a multi-million dollar fund to be distributed among eligible participants who saw their accounts impacted by the alleged fees.
Who Is Eligible for a Payment?
Eligibility for the Gerdau settlement is based on your participation in the retirement plan during a specific timeframe. Generally, the “Settlement Class” includes all individuals who were participants in the Gerdau Ameristeel US, Inc. 401(k) Retirement Savings Plan at any time during the Class Period. This period typically spans several years leading up to the preliminary approval of the settlement.
Determining Your Status
Class members are usually divided into two categories: Active Participants and Former Participants. How you receive your payment depends entirely on which category you fall into at the time of distribution.
- Active Participants: These are individuals who still have an open account within the Gerdau 401(k) plan.
- Former Participants: These are individuals who have a balance of zero in the plan, often because they retired, left the company, or rolled their funds over into a different IRA or 401(k).
If you are unsure of your status, you can check your most recent retirement plan statements or contact the plan administrator. Most eligible individuals should have received a formal notice via mail or email explaining their rights and their inclusion in the settlement class.
Key Dates and Settlement Timeline
Staying informed about the timeline is crucial for managing your expectations regarding payment. The legal process for this settlement moved through several phases throughout 2025. Following the preliminary approval in early 2025, the court held a Final Fairness Hearing in July to ensure the settlement was fair to all class members.
When Were Payments Distributed?
According to the settlement schedule, the distribution process began late in 2025. For most Active Participants, payments were deposited directly into their 401(k) accounts on or around December 2, 2025. Former Participants generally receive their payments via check or a rollover to an alternate retirement account shortly after the active account credits are processed.
If the distribution date has passed and you believe you were eligible but have not seen a change in your account balance or received a check, it is important to verify your information with the settlement administrator. Delays can occur due to processing times or outdated contact information.
How to Receive Your Settlement Money
One of the most common questions regarding the Gerdau settlement is whether you need to file a claim form. In many 401(k) class actions, the process is designed to be automatic for current employees to minimize administrative hurdles.
Automatic Deposits for Active Participants
If you are an Active Participant with a balance in the Gerdau 401(k) plan, you typically do not need to take any action. The settlement administrator works directly with the plan’s recordkeeper to calculate your share and deposit it into your existing account. These funds are usually invested according to your current investment elections within the plan.
Requirements for Former Participants
Former Participants may have had to submit a “Former Participant Claim Form” by a specific deadline to verify their current mailing address or to elect a rollover of the funds. If you missed the deadline to submit a form, you should contact the settlement administrator immediately to see if you can still be included in the distribution or if a check will be mailed to your last known address on file.
How Much Will You Receive?
The amount of money each person receives from the Gerdau settlement is not a flat fee. Instead, it is calculated using a “Plan of Allocation” approved by the court. This formula ensures that the distribution is equitable based on how much the alleged excessive fees impacted each individual account.
Factors Influencing Your Payment
- Account Balance: Generally, those with higher average account balances during the Class Period receive a larger share of the settlement, as they were more heavily impacted by percentage-based fees.
- Duration of Participation: The longer you were enrolled in the plan during the affected years, the more you are likely to receive.
- Total Settlement Fund: The final amount is determined after deducting court-approved attorney fees, administrative costs, and incentive awards for the original plaintiffs.
While some participants may receive significant sums, many will see smaller adjustments to their accounts. Regardless of the amount, these funds represent a restoration of value to your retirement savings.
Important Tax Considerations
Because these settlement funds are related to a tax-advantaged retirement account, there are specific tax implications you should keep in mind. If the money is deposited directly back into your 401(k) or rolled over into an IRA, it remains tax-deferred, meaning you will not owe taxes on it until you withdraw it in retirement.
However, if you are a Former Participant and receive a check directly, the payment may be considered a taxable distribution unless you roll it over into another qualified retirement account within 60 days. It is always advisable to consult with a qualified tax professional or financial advisor to understand how this payment affects your specific tax situation and to avoid any unintended penalties from the IRS.
What to Do if You Moved
One of the biggest obstacles to receiving settlement funds is an outdated mailing address. If you have moved since you last worked for Gerdau, the settlement administrator may not have your current contact information. This is especially critical for Former Participants who are expecting a physical check.
You should visit the official settlement website or contact the administrator to update your address. Providing your current details ensures that important tax documents and settlement checks reach you without delay. Even if the primary distribution has already occurred, there is often a process for reissuing checks that were returned as undeliverable.
Conclusion and Next Steps
The Gerdau 401(k) settlement is a significant step in protecting the retirement assets of employees and ensuring that plan fiduciaries act in the best interests of participants. If you were part of the plan during the Class Period, you have a right to your share of the recovery. By verifying your eligibility, keeping your address updated, and monitoring your retirement account statements, you can ensure that you benefit from this legal resolution.
If you found this guide helpful, we encourage you to explore our other articles on managing retirement accounts and understanding your rights as an employee. Staying informed is the best way to safeguard your financial future and make the most of your hard-earned savings.