Wechsler Harwood Halebian & Feffer LLP Files Class Action Against Knight Trading Group, Inc. (Nasdaq: NITE)

Wechsler Harwood Halebian & Feffer LLP filed a securities class action lawsuit in the United States District Court for the District of New Jersey on behalf of all investors who bought the securities of Knight Trading Group, Inc. (NASDAQ: NITE) ("Knight" or the "Company") in the period from July 19, 2000 and October 4, 2000, inclusive (the "Class Period").

The complaint charges that Knight, along with Kenneth Pasternak (President and Chief Executive Officer of Knight), Robert Turner (Chief Financial Officer of Knight), Steven Steinman (former Chairman of the Board of Knight), Peter Hajas (Director of Knight and Chief Executive Officer of Knight Financial Products LLC) and Robert Lazarowitz (Executive V.P. and Chief Operating Officer of Knight Capital Markets) (together, "Defendants") violated the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Defendants issued materially false and misleading financial information regarding the Company's condition and prospects. Specifically, it is charged that during the Class Period Defendants repeatedly misrepresented to the financial market that Knight would achieve 20% to 30% earnings growth in the third quarter of fiscal 2000. Defendants were aware, or recklessly disregarded, that these growth projections were not achievable because the Company was experiencing declining trading volume on the equity markets which led to lower than expected revenue. The dissemination of this materially misleading information caused the price of Knight's securities to be artificially inflated throughout the Class Period. Certain Company insiders took advantage of the artificially inflated stock price to sell approximately $55 million of their common stock to unsuspecting investors.

Plaintiff seeks to recover damages on behalf of all investors who purchased Knight securities during the Class Period and who suffered damages as a result, and is 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 our website 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 16, 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)
  Craig Lowther, Shareholder Relations, ext. 257 or clowther@whhf.com

SOURCE: Wechsler Harwood Halebian & Feffer LLP

Contact: Craig Lowther, Shareholder Relations of Wechsler Harwood
Halebian & Feffer LLP, 877-935-7400, ext. 257, clowther@whhf.com

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