PHILADELPHIA, Dec. 5, 2000 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Virginia against defendants PSINet, Inc. ("PSINet" or the "Company") (Nasdaq:PSIX), William L. Schrader (Chairman and CEO), Harold S. Willis (President and Chief Operating Officer), and Larry Hyatt (Chief Financial Officer and Executive VP), on behalf of purchasers of the securities of PSINet between May 9, 2000 and Nov. 2, 2000, inclusive (the "Class Period").
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10(b)-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between May 9, 2000, and Nov. 2, 2000. For example, as alleged in the complaint, on Aug. 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 Sept. 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 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 Nov. 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%.
If you bought the securities of PSINet between May 9, 2000 and Nov. 2, 2000, you may, no later than Jan. 2, 2001, move the court to serve as lead plaintiff of the class, if you choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Spector, Roseman & Kodroff, P.C., or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Robert M. Roseman, toll free at (888) 844-5862 or via e-mail at classaction@spectorandroseman.com. For more detailed information about the firm please visit its Web site at http://www.spectorandroseman.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pa. and San Diego, Calif., concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firms reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.