California Public Employees’ Retirement System v. ANZ Securities, Inc.

PETITIONER: California Public Employees' Retirement System
RESPONDENT: ANZ Securities, Inc., et al.
LOCATION: Lehman Brothers Building

DOCKET NO.: 16-373
LOWER COURT: United States Court of Appeals for the Second Circuit

GRANTED: Jan 13, 2017

Facts of the case

Before it went bankrupt in 2008, Lehman Brothers operated as a global investment bank, with stock traded on the New York Stock Exchange. Between July 2007 and January 2008, the company raised over $31 billion through debt offerings. California Public Employees’ Retirement System (CPERS), the largest pension fund in the country, purchased millions of dollars of these securities. In 2008, another retirement fund filed a putative class action suit against Lehman Brothers that claimed that Lehman Brothers was liable under Section 11 of the Securities Act of 1933 for false and misleading statements. In February 2011, over three years after the initial proceedings were filed but before the district court had decided whether or not to certify the lawsuit as a class action, CPERS sued Lehman Brothers separately. The case was then merged with the other retirement fund’s lawsuit and transferred to the New York district court, where the first case was pending. Later in 2011, the parties involved in the initial suit settled. When CPERS received notice of the settlement agreement, it opted to pursue its own claims individually against Lehman Brothers. The district court dismissed the case as having been untimely filed because the filing of the initial putative class action suit did not constitute a timely filing for a later individual claim. The U.S. Court of Appeals for the Second Circuit affirmed.



  1. Does the filing of a putative class action lawsuit serve to satisfy the three-year time limit in Section 13 of the Securities Act with respect to the individual claims of other class members?

  2. May a member of a timely filed putative class action suit file an individual suit on the same causes of action before class certification is decided, as long as all time limits are met?