Reinforcing steel contractor Pacific Coast Steel (PCS), majority-owned by Gerdau Ameristeel Corp., is seeking more than $200 million in a 12-count lawsuit.

PCS alleges that Todd Lee Leany—whom Pacific Coast hired under a five-year employment contract when it acquired Leany's companies in April 2008—breached his contract, the asset purchase agreement and misappropriated PCS' trade secrets by secretly owning and operating two companies that competed directly with PCS.

San Diego-based PCS—in which Tampa, Fla.-based Gerdau Ameristeel has an 84-percent stake—has asked the court to revoke the asset purchase agreement; to have Leany and other defendants refund its $151-million purchase costs; for a judgment of at least $50 million in damages, among other costs; and for a temporary and permanent restraining order to stop Leany's other businesses from continuing to compete with PCS.

The lawsuit, filed in U.S. District Court for the District of Nevada, names as...