Which legislation requires detailed allegations when filing a claim regarding securities fraud?

The correct choice is linked to the Private Securities Litigation Reform Act. This legislation was enacted to address issues of securities fraud, particularly by imposing stricter requirements for allegations when filing lawsuits related to securities fraud. It aims to deter frivolous lawsuits by requiring plaintiffs to provide a higher level of detail in their claims. This includes specific requirements for pleading falsity and the mental state of the wrongdoers, which makes the claims more substantiated and grounded in fact.

The act also sets forth a procedure for the court to evaluate whether the allegations indeed show a reasonable possibility of success, which helps protect companies from unwarranted litigation. By raising the bar for the pleading standards, this legislation helps to ensure that only claims with substantial merit proceed, thereby fostering a more equitable legal environment in the securities market.