According to a Press Release dated October 27, 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 June 2, 1999, IXL commenced an initial public offering of 4,800,000 of its shares of common stock at an offering price of $12 per share (the "IXL IPO"). In connection therewith, IXL 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) Merrill Lynch, Pierce, Fenner & Smith, Incorporated; FleetBoston Robertson Stephens, Inc.; Bear Stearns & Co, Inc.; and Morgan Stanley & Co. Incorporated had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Merrill Lynch, Pierce, Fenner & Smith, Incorporated; FleetBoston Robertson Stephens, Inc.; Bear Stearns & Co, Inc.; and Morgan Stanley & Co. Incorporated allocated to those investors material portions of the restricted number of IXL shares issued in connection with the IXL IPO; and (ii) Merrill Lynch, Pierce, Fenner & Smith, Incorporated; FleetBoston Robertson Stephens, Inc.; Bear Stearns & Co, Inc.; and Morgan Stanley & Co. Incorporated had entered into agreements with customers whereby Merrill Lynch, Pierce, Fenner & Smith, Incorporated; FleetBoston Robertson Stephens, Inc.; Bear Stearns & Co, Inc.; and Morgan Stanley & Co. Incorporated agreed to allocate IXL shares to those customers in the IXL IPO in exchange for which the customers agreed to purchase additional IXL shares in the aftermarket at pre-determined prices.