Wechsler Harwood Files Class Action Against PSINet, Inc. (Nasdaq: PSIX)

Wechsler Harwood Halebian & Feffer LLP filed 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 February 22, 2000 through and including November 1, 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 February 22, 2000, and November 1, 2000, inclusive. Plaintiff alleges that defendants overstated PSINet's results of operations for the year ended December 31, 1999 by overstating certain receivables. Plaintiff also alleges that defendants failed to disclose the incomparability of the operations of Metamor Worldwide, Inc., a company acquired by PSINet during 2000, and the state of Company's true financial position and liquidity. Finally, plaintiff alleges that defendants' misrepresented PSINet's overall revenue growth rate and business prospects particularly in regard to the Company's international web-hosting presence.

As late as 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 our 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 & Feffer LLP

Contact: Patricia Guiteau , Shareholder Relations Department of Wechsler
Harwood Halebian & Feffer LLP, 877-935-7400

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