The Securities Industry and Financial Markets Association applauded a U.S. Supreme Court decision today, which endorsed a high pleading standard for class-action securities lawsuits.

SIFMA said that the case is the second victory in two weeks for investors and the industry, following an earlier decision, which immunized securities underwriting practices from civil antitrust liability.

“Twice in two weeks, the Supreme Court has correctly repelled overly aggressive trial attorneys. Limiting their ability to drag American businesses before a judge based only on speculative allegations unclogs the courts, saves American shareholders money and allows our industry to focus on innovation and growth,” said Marc Lackritz, president and CEO of SIFMA, in a news release.

“This decision reinforces legislation that was originally designed to curb nuisance filings and other vexatious litigation. Today’s important decision lends certainty and uniformity to the pleading standards in this area. Certainty and uniformity benefit everyone – investors and firms alike,” he added.

In December 2006, SIFMA filed a joint amicus brief with the Chamber of Commerce in this case. That brief argued that low pleading standards in securities fraud cases would encourage abusive suits that the Private Securities Litigation Reform Act set out to prevent, and those low standards would make it more difficult to get early dismissal for suits based on speculative allegations of fraud.