According to a Press Release dated Oct 25, 2001, a complaint was filed alleging 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 December 9, 1999, eBenX
commenced an initial public offering of 5,000,000 of its shares of common stock at an offering price of $20 per share (the "eBenX IPO"). In connection
therewith, eBenX 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) Robertson Stephens, Warburg Dillon, and Thomas Weisel had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Robertson Stephens, Warburg Dillon, and Thomas Weisel allocated to those investors material portions of the restricted number of eBenX shares issued in connection with the eBenX IPO; and (ii) Robertson Stephens, Warburg Dillon, and Thomas Weisel had entered into agreements with customers whereby Robertson Stephens, Warburg Dillon, and Thomas Weisel agreed to allocate eBenX shares to those customers in the eBenX IPO in exchange for which the customers agreed to purchase additional eBenX shares in the aftermarket at pre-determined prices.