According to a Press Release dated 7/12/2001 a complaint was filed against Buy.com allegeing violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Merrill Lynch, Bear Stearns, Robertson Stephens, Goldman Sachs and Smith Barney had solicited and received excessive and undisclosed commissions in exchange for which they allocated to those investors material portions of the restricted number of Buy.com shares issued in Buy.com IPO; and that they had entered into agreements with customers whereby they agreed to allocate Buy.com shares to those customers in the Buy.com IPO in exchange for which the customers agreed to purchase additional Buy.com shares in the aftermarket at pre-determined prices.