Stull, Stull & Brody Announces Class Action Against Underwriters in Connection with the IPO of WebMD Corporation.

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--Aug. 30, 2001

The following statement was issued today by the law firm of Stull, Stull & Brody.

Notice is hereby given that a class action lawsuit was filed on August 30, 2001, in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of WebMD Corporation ("WebMD"), formerly known as Healtheon Corporation (NASDAQ:HLTH) from between February 10, 1999 and December 6, 2000, inclusive (the "Class Period") against defendant underwriters of WebMD's initial public offering: Goldman Sachs & Co. and Morgan Stanley & Co., Incorporated.

The complaint alleges violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. On or about February 10, 1999, WebMD commenced an initial public offering of 5,000,000 of its shares of common stock at an offering price of $8 per share (the "WebMD IPO"). In connection therewith, WebMD 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) defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which defendants allocated to those investors material portions of the restricted number of WebMD shares issued in connection with the WebMD IPO: and (ii) defendants had entered into agreements with customers whereby defendants agreed to allocate WebMD shares to those customers in the WebMD IPO in exchange for which the customers agreed to purchase additional WebMD shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings.

Plaintiff seeks to recover damages on behalf of class members and is represented by, among others, the law firm of Stull, Stull & Brody. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 25 years and has obtained court approval of substantial settlements on numerous occasions.

If you bought the common stock of WebMD between February 10, 1999 and December 6, 2000, you may, no later than September 21, 2001, request the Court appoint you as lead plaintiff in this action. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at [e-mail], or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017.