• In Adler v. Raynor, No.1:09-cv-08877 (DLC) (THK), 2011 WL 5024412 (S.D.N.Y. October 20, 2011), the magistrate judge issued a ruling denying an application for recovery of $1.7 million in attorneys’ fees following the settlement of a class action complaint alleging breaches of fiduciary duty arising from the use of certain investment products that were alleged to be imprudent and constitute prohibited transactions because of their affiliation with the Plan sponsor. Applying the standards for recovery of attorney’s fees in ERISA lawsuits recently enunciated by the Supreme Court in Hardt v. Reliance Standard Life Ins. Co., 130 S. Ct. 2149 (2010), the court concluded that the changes achieved by the settlement – including the voluntary resignation of the funds’ independent fiduciary and commitments to comply with certain record keeping requirements and to make certain documents available – did not constitute “some degree of success on the merits” since the funds were permitted to continue to engage in the challenged investment activities. The court also determined that, even if the settlement had achieved some success on the merits, recovery of fees would be inappropriate under the “five factor” test set forth in Chambless v. Masters, Mates & Pilots Pension Plan, 815 F.2d 869, 871 (2d Cir. 1987), which may still be applied in addition to the Hardt test. Finally, the court observed that, even if plaintiffs had satisfied the standards for an award of attorney’s fees, it would still have not awarded them based on the application submitted because the amount requested was “excessive in the extreme.”