According to a Press Release dated November 2, 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 May 5, 1999, NorthPoint commenced an initial public offering of 15,000,000 of its shares of common stock at an offering price of $24 per share (the "NorthPoint IPO"). In connection therewith, NorthPoint 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 Underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriters allocated to those investors material portions of the restricted number of NorthPoint shares issued in connection with the NorthPoint IPO; and (ii) the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate NorthPoint shares to those customers in the NorthPoint IPO in exchange for which the customers agreed to purchase additional NorthPoint shares in the aftermarket at pre-determined prices.