On February 7, 2011, the California Public Employees' Retirement System ("CalPERS") filed suit in the Northern District of California against 12 former executive officers and directors of Lehman Brothers Holdings Inc. ("Lehman") and Lehman's underwriters, asserting claims under sections 10(b) and 20(a) of the Exchange Act and sections 11, 12(a) and 15 of the Securities Act for losses suffered in its June 2007 through September 2008 investments in Lehman common stock and bonds. The complaint alleges that during that period Lehman did not conduct proper due diligence when it securitized subprime and Alt-A loans and that Lehman failed to adequately disclose risks associated with subprime and Alt-A mortgages. CalPERS also alleges that Lehman failed to adequately disclose risks relating to increased leverage in its investments and that it manipulated its balance sheet by removing debt on a quarterly basis through the use of "Repo 105" transactions. Complaint.