PSINet Files Motions to Dismiss Pending Class Action Litigation
BusinessWire, 11/29/2000 07:46
ASHBURN, Va.--(BUSINESS WIRE)--Nov. 29, 2000--PSINet Inc. (Nasdaq:PSIX), today announced that it has filed motions to dismiss 15 purported class action complaints alleging violations of securities laws by the company and certain of its senior officers and directors that had been filed since November 3, 2000.
PSINet decided to promptly move for dismissal on the ground that none of the complaints satisfy any of the fundamental requirements to state a claim for violation of the securities laws. In its motions, PSINet stated that all of the complaints fall within the category of claims that Congress clearly prohibited under the Private Securities Litigation Reform Act of 1995 and therefore should be dismissed.
The rapidity with which the complaints were filed, along with the repetition of obvious typographical and factual errors, demonstrates that plaintiffs and their counsel made their claims without engaging in reasonable investigation or factual inquiry before asserting claims that are simply untrue.
"We stated when these complaints were filed that the company intended to defend itself and its officers and directors vigorously against these claims, and we mean it," stated PSINet Chairman and Chief Executive Officer William L. Schrader. "We are confident in our expectation that the company and its named officers and directors will demonstrate that the claims made by various plaintiffs' lawyers have absolutely no merit."
Headquartered in Ashburn, Va., PSINet is an Internet Super Carrier offering global e-commerce infrastructure, end-to-end IT solutions and a full suite of retail and wholesale Internet services through wholly-owned PSINet subsidiaries. Services are provided on PSINet-owned and operated fiber, satellite, web hosting and switching facilities, providing direct access in more than 900 metropolitan areas in 28 countries on five continents. PSINet information can be obtained by e-mail at info@psi.com, by accessing the web site at www.psinet.com, or by calling in the U.S. (800) 799-0676.
This release contains information about management's views of the Company's future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements, as a result of a variety of factors including but not limited to, competitive developments, risks associated with the Company's growth, the development of the Internet market, regulatory risks and other factors that are discussed in the Company's Annual Report, on Form 10-K and other documents periodically filed with the SEC.
CONTACT: PSINet Inc.
Media Contact:
Doug Baj, 703/726-1431
bajd@psi.com
or
Investor Relations Contact:
Kevin Libby, 877/990-PSIX
libbyk@psi.com
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