According to a Press Release dated August 24, 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. On or about May 31, 2000 ONI commenced an
initial public offering of 8,000,000 of its shares of common stock at an
offering price of $25.00 per share (the "ONI IPO"). In connection therewith, ONI filed a registration statement, which incorporated a prospectus (the
"Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) the Underwriter Defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriter Defendants allocated to those investors material portions of the restricted number of ONI shares issued in connection with the ONI IPO;and (ii) the Underwriter Defendants had entered into agreements with customers whereby the Underwriter Defendants agreed to allocate ONI shares to those customers in the ONI IPO in exchange for which the customers agreed to purchase additional ONI shares in the aftermarket at pre-determined prices.