According to a Press Release dated July 27, 2001, the complaint alleges 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) the Bear Stearns, Robertson Stephens, Goldman Sachs, and Morgan Stanley had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Bear Stearns, Robertson Stephens, Goldman Sachs, and Morgan Stanley allocated to those investors material portions of the restricted number of Net2Phone shares issued in connection with the Net2Phone IPO; and (ii) the Bear Stearns, Robertson Stephens, Goldman Sachs, and Morgan Stanley had entered into agreements with customers whereby the Bear Stearns, Robertson Stephens, Goldman Sachs, and Morgan Stanley agreed to allocate Net2Phone shares to those customers in the Net2Phone IPO in exchange for which the customers agreed to purchase additional Net2Phone shares in the aftermarket at pre-determined prices.