A settlement was reached in this case on behalf of all purchasers of Lycos, Inc. common stock during the period December 7, 1999 and September 18, 2000, inclusive. According to the Stipulation and Agreement of Compromise and Settlement, dated August 5, 2003, the Gross Settlement Fund was in the amount of
$12,026,000.

The original complaint alleges that Allaire and its principals knew or recklessly disregarded that, in its attempt to capture a broad customer base, the Company had spread itself too thin and consequently, lacked the resources to develop and market its core infrastructure product, ColdFusion, while simultaneously developing a market presence for its newer products, Spectra and Jrun. It also claims that company insiders sold 407,000 shares of Allaire stock in August, at artificially inflated prices for proceeds of $13.3 million. Only after they thus cashed out a substantial portion of their investment did the Company reveal, on September 18, 2000, that they expected Allaire to post a third-quarter net loss in the range of $(0.05) to $(0.20) per share, below both analysts' third quarter consensus estimates and the previous two quarters’ results.