(Bloomberg) -- The U.S. Supreme Court tightened the deadlinesfor some securities-fraud suits, throwing out an investor lawsuit in a case stemming from LehmanBrothers Holdings Inc.’s 2008 collapse.

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The justices, voting 5-4 along ideological lines, ruled that theCalifornia Public Employees’ Retirement Systemtook too long to file its suit against the underwriters of Lehman’sdebt. CalPERS said the three-year deadline shouldhave been extended because similar class-action lawsuits had beenfiled earlier.

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The ruling limits the flexibility investors will have in legalfights over securities offerings. Lower courts had been divided onthe issue.

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The class-action lawsuits against the underwriters were filedstarting in June 2008, centering on debt that was issued from July2007 to January 2008.

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CalPERS was eligible to be a part of the classlitigation but chose to opt out and file its own lawsuit inFebruary 2011, more than three years after the last of the debtofferings. The class lawsuits were later settled.

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The case is California Public Employees’ Retirement System v.ANZ Securities, 16-373.

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