According to a Press Release dated Oct. 26, 2001, a complaint 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 June 30, 1999, Ask Jeeves commenced an initial public offering of 3,000,000 of its shares of common stock at an offering price of $14 per share (the "Ask Jeeves IPO"). In connection therewith, Ask Jeeves 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) Morgan Stanley & Co. Incorporated and FleetBoston Robertson Stephens, Inc. had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Morgan Stanley & Co. Incorporated; and FleetBoston Robertson Stephens, Inc. allocated to those investors material portions of the restricted number of Ask Jeeves shares issued in connection with the Ask Jeeves IPO; and (ii) Morgan Stanley & Co. Incorporated and FleetBoston Robertson Stephens, Inc. had entered into agreements with customers whereby the Underwriter Defendants agreed to allocate Ask Jeeves shares to those customers in the Ask Jeeves IPO in exchange for which the customers agreed to purchase additional Ask Jeeves shares in the aftermarket at pre-determined prices.