The Supreme Court ruled out Tuesday not to loosen the standards for the investors to prove securities fraud.

The Court said the investors will now have more complications in proceeding their lawsuit as a clear link between the alleged fraud and a drop in stock price.

The decision comes amid the lawsuit filed against Dura Pharmaceuticals Inc. accused of fraud with its asthma drug dispenser that did not receive federal approval as expected.

"We consider a Ninth Circuit holding that a plaintiff can satisfy this requirement simply by alleging in the complaint and subsequently establishing that the price of the security on the date of purchase was inflated. In our view, the Ninth Circuit is wrong," wrote Justice Stephen G. Breyer.

The Ninth Circuit says there is no need for investors to show the links between the fraud and stock drop as they can point to the changes in stock prices.