Wechsler Harwood Engaged to File Class Action Against PSINet., Inc. (Nasdaq: PSIX)

NEW YORK, Nov. 6 /PR Newswire/ -- Plaintiff has engaged Wechsler Harwood Halebian & Feffer LLP to file a securities class action lawsuit against PSINet, Inc. ("PSINET" or the "Company") and certain other defendants in the United States District Court for the Eastern District of Virginia on behalf of all investors who purchased the common stock of during the period May 9, 2000 through and including November 2, 2000 (the "Class Period") to recover damages caused by defendants' violation of the federal securities laws.

The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between May 9, 2000, and November 2, 2000. Plaintiff alleges that on August 8, 2000, PSINet issued a press release announcing a 125% revenue growth in the Company's second quarter of 2000 over the comparable 1999 quarter, and boasted of the Company's growing international web-hosting presence. On September 15, 2000, PSINet publicly advised the investing community that (among other things) its revenue for the second half of 2000 will triple from the same period in 1999, and that the Company will attain profitability. The Company also noted that its guidance took into account expected softness and slower growth in some of its market segments. These statements are alleged to have been materially false and misleading because the Company was experiencing severe operational difficulties in executing its strategy, and because their statements of growth were lacking in any reasonable basis when made. On November 2, 2000, PSINet issued a press release announcing the resignation of its president, a planned dramatic restructuring of the Company, and fourth quarter results well below its prior guidance. In response to this announcement the price of PSINet common stock plummeted by more than 55%.

Plaintiff seeks to recover damages on behalf of all investors who purchased PSINET stock during the Class Period and who suffered damages as a result, and are represented by Wechsler Harwood Halebian & Feffer LLP, which has extensive experience representing investors in class actions and has successfully recovered hundreds of millions of dollars for defrauded investors. The reputation and expertise of the firm in investor and other class action litigation has been repeatedly recognized by the courts, which have appointed the firm to major positions in complex class action litigations. For more information about Wechsler Harwood Halebian & Feffer LLP, please visit the firm's Web site at http://www.whhf.com/.

If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than January 2, 2001 move the Court to serve as lead a plaintiff.

If you would like to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact the following:

  Wechsler Harwood Halebian & Feffer LLP
  488 Madison Avenue, New York, New York 10022
  Telephone: 877-935-7400 (toll free)
  Patricia Guiteau , Shareholder Relations Department: pguiteau@whhf.com

SOURCE: Wechsler Harwood Halebian and Feffer LLP

Contact: Patricia Guiteau, Shareholder Relations Department of Wechsler
Harwood Halebian & Feffer LLP, 877-935-7400, pguiteau@whhf.com

Website: http://www.whhf.com/