<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-Q

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended March 31, 2000

                                       OR

             [  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                        Commission file number 000-24711


                             EBS Litigation, L.L.C.
             (Exact name of registrant as specified in its charter)

                      Delaware                            13-3989964
          (State or other jurisdiction of              (I.R.S. Employer
           incorporation or organization)           Identification Number)

                   90 Park Avenue
              New York, New York 10016
      (Address of principal executive offices)

                                (212) 682-7474
             (Registrant's telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]


At May 1, 2000 there were 10,000,000 Class A Membership Units outstanding and no
Class B Membership Units outstanding.

<PAGE>
                         PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

                            EBS LITIGATION, L.L.C.
                              Statement of Income
              For the Three Months Ended March 31, 2000 and 1999
              --------------------------------------------------
<TABLE>
<CAPTION>
                                        For the three months ended
                                                March 31,

                                           2000           1999
                                        (unaudited)    (unaudited)
<S>                                      <C>            <C>
Income:
     Defendant payment revenue            $   --        $    --
     Interest                               24,261         24,797
                                          --------       --------
          Total income                    $ 24,261       $ 24,797
                                          ========       ========

Expenses:
     Legal and accounting fees            $ 38,366       $  2,000
     Insurance                              22,192         22,192
     Transfer agent and settlement
      administration fees                   12,000         10,000
     Manager fees                            6,691         15,966
     Other                                     500            100
                                          --------       --------
          Total expenses                    79,749         50,258
                                          --------       --------
Net loss                                  $(55,488)      $(25,461)
                                          ========       ========
</TABLE>
  The accompanying notes are an integral part of these financial statements.

                                       2
<PAGE>

                            EBS LITIGATION, L.L.C.
                                 Balance Sheet
                     March 31, 2000 and December 31, 1999
                     ------------------------------------
<TABLE>
<CAPTION>
                                                                    March 31, 2000   December 31,
                                                                      (unaudited)       1999
<S>                                                                  <C>            <C>
Assets
Cash and cash equivalents

  Available for general operations                                     $1,904,680     $1,902,954
Prepaid insurance                                                          45,123         67,315
Interest receivable                                                         8,736          7,953
Miscellaneous receivable                                                    --            18,261
                                                                       ----------     ----------
    Total assets                                                       $1,958,539     $1,996,483
                                                                       ==========     ==========

Liabilities
Accrued expenses                                                       $  119,958     $  102,414
                                                                       ----------     ----------
    Total liabilities                                                     119,958        102,414
                                                                       ----------     ----------
Members' equity:
  Membership Units (Class A - 10,000,000 authorized, issued and
  outstanding at March 31, 2000 and December 31, 1999,
  Class B - 0 authorized, issued and outstanding at March 31,
  2000 and December 31, 1999)

  Retained earnings                                                     1,838,581      1,894,069
                                                                       ----------     ----------
    Total members' equity                                               1,838,581      1,894,069
                                                                       ----------     ----------
    Total liabilities and members' equity                              $1,958,539     $1,996,483
                                                                       ==========     ==========
</TABLE>
  The accompanying notes are an integral part of these financial statements.

                                       3
<PAGE>

                            EBS LITIGATION, L.L.C.
                    Statement of Changes in Members' Equity
          For the Periods Ended March 31, 2000 and December 31, 1999
          ----------------------------------------------------------

<TABLE>
<CAPTION>
                                       Class A        Class B        Retained           Total
                                      Membership     Membership      Earnings
                                        Units          Units
<S>                                   <C>            <C>            <C>              <C>
Balance, January 1, 1999              10,000,000         --         $2,888,122       $2,888,122

Capital distribution                          --         --           (787,722)        (787,722)

Current year loss                             --         --           (206,331)        (206,331)
                                      ----------     ----------     ----------       ----------
Balance, December 31, 1999            10,000,000         --          1,894,069        1,894,069

Current period loss (unaudited)               --         --            (55,488)         (55,488)
                                      ----------     ----------     ----------       ----------
Balance, March 31, 2000
 (unaudited)                          10,000,000         --         $1,838,581       $1,838,581
                                      ==========     ==========     ==========       ==========
</TABLE>


  The accompanying notes are an integral part of these financial statements.

                                       4
<PAGE>

                            EBS LITIGATION, L.L.C.
                            Statement of Cash Flows
              For the Three Months Ended March 31, 2000 and 1999
              --------------------------------------------------

<TABLE>
<CAPTION>
                                                               For the three months ended
                                                                      March 31,
                                                                   2000           1999
                                                               (unaudited)    (unaudited)
<S>                                                            <C>            <C>
Cash flows from operating activities:

  Net loss                                                     $  (55,488)    $  (25,461)

  Reconciliation of net loss to cash flows provided by
   operating activities:

    Decrease in prepaid insurance                                  22,192         22,192

    Decrease in miscellaneous receivables                          18,261             --

    (Increase) decrease in interest receivable                       (783)         3,814

    Increase (decrease) in accrued expenses                        17,547        (70,123)
                                                               ----------     ----------
      Cash flows provided by/(used in) operating
      activities                                                    1,729        (69,578)
                                                               ----------     ----------

Cash flows from financing activities:
  Capital distribution, net                                            --       (787,722)
                                                               ----------     ----------

      Cash flows provided by/(used in) financing
      activities                                                       --       (787,722)
                                                               ----------     ----------

Net increase (decrease) in cash and cash equivalents                1,729       (857,300)

Cash and cash equivalents at beginning of period                1,902,951      2,972,041
                                                               ----------     ----------

Cash and cash equivalents at end of period                     $1,904,680     $2,114,741
                                                               ==========     ==========
</TABLE>


  The accompanying notes are an integral part of these financial statements.

                                       5
<PAGE>

EBS LITGATION, L.L.C.
Notes to Financial Statements
March 31, 2000 and December 31, 1999
-------------------------------------------------------------------------------

1.   Description of business

     EBS Litigation, L.L.C. (the "Company") is governed by a Members Agreement,
     dated as of September 25, 1997 (the "Members Agreement"). Pursuant to the
     Members Agreement, the Company's purposes are to (a) prosecute, settle
     and/or liquidate the Unresolved Avoidance Claims relating to the
     distribution by Edison Brothers Stores, Inc. ("Edison") of approximately
     4.4 million shares of common stock of Dave & Busters, Inc. to holders of
     Edison common stock in the form of a dividend and all related transactions
     (the "Unresolved Avoidance Claims"), (b) receive, and administer the cash
     proceeds of the Unresolved Avoidance Claims, and (c) distribute the net
     proceeds to the appropriate holders of Membership Units (the "Members") in
     accordance with the Members Agreement.

2.   Summary of significant accounting policies

     This summary of significant accounting policies is presented to assist in
     evaluating the Company's financial statements included in this report.
     These principles conform to generally accepted accounting principles. The
     preparation of financial statements in conformity with generally accepted
     accounting principles requires that management make estimates and
     assumptions which impact the reported amounts of assets and liabilities at
     the date of the financial statements and the reported amounts of revenues
     and expenses during the reporting period. Actual results could differ from
     those estimates. Adjustments are of a normal recurring nature.

     Basis of presentation

     These financial statements include the accounts of the Company for the
     periods from January 1, 1999 through December 31, 1999, January 1, 1999
     through March 31, 1999 (unaudited) and January 1, 2000 through March 31,
     2000 (unaudited).

     Cash and cash equivalents

     Cash consists of amounts held in an account in the Company's name at a
     highly-rated financial institution, which funds are invested in an
     institutional money market fund investing solely in direct obligations of
     the United States Government.

     Accrued expenses

     Accrued expenses include amounts payable to service providers and other
     vendors. Amounts are payable within one year.

     Defendant payment revenue

     Defendant payment revenue is determined on an accrual basis and represents
     settlements with individual defendants of Avoidance Claims during the
     period.

     Interest

     Interest income is determined on the accrual basis. Interest receivable is
     due to be received within one year.

     Expenses

     All expenses of the Company are recorded on the accrual basis of
     accounting.

     Income taxes

     The Company is not subject to income taxes. Instead, the Members report
     their distributive share of the Company's profits and losses on their
     respective income tax returns.

                                       6
<PAGE>

EBS LITGATION, L.L.C.
Notes to Financial Statements
March 31, 2000 and December 31, 1999
-------------------------------------------------------------------------------

3.   Members' equity

     On September 25, 1997, Edison transferred its rights, title and interest in
     the Unresolved Avoidance Claims. In addition, as of September 25, 1997,
     Edison was obligated to provide cash funding to the Company of $2.0 million
     (the "LLC Funding Amount"), which was subsequently paid to the Company on
     October 16, 1997. Such transfer and funding were in exchange for 10,000,000
     Class B Membership Units of the Company, which represented all of the
     outstanding Membership Units of the Company. On December 12, 1997, in
     accordance with the Company's Members Agreement and the Plan of
     Reorganization, Edison exchanged 9,064,140 Class B Membership Units for
     9,064,140 Class A Membership Units of the Company and simultaneously
     distributed such Class A Membership Units to holders of Allowed General
     Unsecured Claims (as defined in the Plan).

     During 1998, Edison exchanged 936,138 Class B Membership Units for 936,138
     Class A Membership Units of the Company and simultaneously distributed such
     Class A Units to holders of Allowed General Unsecured Claims.

     During 1998, the Company distributed $13.7 million to holders of Class A
     Membership Units. In addition, $0.8 million was retained for holders of the
     Class A Membership Units that were distributed in December 1998.

     Also during 1998, certain Class A Membership Unit holders returned 278
     Class A Membership Units to Edison as such Membership Units had been
     distributed in error. The distribution proceeds relating to these returned
     Membership Units are included in retained earnings and were made available
     for future distribution to holders of Class A Membership Units. At December
     31, 1999, Edison has no Class B Membership Units outstanding.

     On February 1, 1999, the Company distributed the $0.8 million of reserved
     amounts of D&B Spinoff Settlement Proceeds (as defined in the Plan) to the
     holders of the Class A Membership Units that were distributed in November
     and December 1998. This represents the entire amount of funds reserved for
     future holders of Class A Membership Units.

4.   Subsequent events (unaudited)

     Cash on deposit as of April 25, 2000
     As of April 25, 2000, the Company had approximately $1.9 million in cash
     and cash equivalents. This amount represents the sum of aggregate D&B
     Spinoff Settlement Proceeds, the L.L.C. Funding Amount and accrued interest
     through March 31, 2000, less disbursements through April 25, 2000. These
     proceeds will be used for general operations. Any amounts not used will be
     made available for future distributions to Class A Membership Unit holders.

                                       7
<PAGE>

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

     The following is a discussion and analysis of the financial condition and
the results of operations of the Company as of and for the years ended December
31, 1999 and 1998 and as of and for the periods ended December 31, 1997, January
1, 2000 through March 31, 2000 (unaudited) and January 1, 1999 through March 31,
1999 (unaudited), and of certain factors that may affect the Company's
prospective financial condition and results of operations. This discussion and
analysis should be read in conjunction with the Company's Financial Statements
and Notes thereto included elsewhere herein and included in the Company's Annual
Report and Form 10-K for the year ended December 31, 1999. This discussion
contains certain forward-looking statements that involve risks and
uncertainties. The Company's actual results could differ materially from the
results expressed in, or implied by, such statements.

Results of Operations/Overview

     The Company, which was formed pursuant to the Amended Joint Plan of
Reorganization Under Chapter 11 of the U.S. Bankruptcy Code filed by the Debtors
(the "Plan") and the Members Agreement, is a limited purpose entity organized
solely for the purposes of (a) prosecuting, settling and/or liquidating the
Unresolved Avoidance Claims, (b) receiving and administering the proceeds from
the Unresolved Avoidance Claims (the "Avoidance Claim Proceeds"), and (c)
distributing the net Avoidance Claim Proceeds to holders of the Company's Class
A Membership Units pursuant to the terms of the Members Agreement. The Company
commenced its activities on September 25, 1997.

     On October 16, 1997, the Company received the L.L.C. Funding Amount of $2
million. The Company recognizes income from amounts received from the
prosecution, settlement and liquidation of the Unresolved Avoidance Claims. To
date, the Company has only received settlement amounts. During the period ended
December 31, 1997, the Company received approximately $10.0 million in D&B
Spinoff Settlement Proceeds. The D&B Spinoff Settlement Period was to initially
expire on October 27, 1997, at which time the Company had received approximately
$7.8 million in D&B Spinoff Settlement Proceeds. However, many defendants were
not able to accept the D&B Spinoff Settlement by the initial deadline for
reasons including, without limitation, (a) the time lag attendant to the
transmission of settlement-related documents from record holders to their
beneficial holders, and (b) the desire of certain D&B Spinoff Stockholders to
consult with counsel or other advisors prior to participating in the D&B Spinoff
Settlement. The Manager therefore decided that an extension of the D&B Spinoff
Settlement Period was in the best interests of the Company. The extension
permitted the recovery of additional D&B Settlement Proceeds of approximately
$2.2 million between October 27, 1997 and December 31, 1997, approximately $5.0
million for the year ended December 31, 1998 and none for the year ended
December 31, 1999 or three months ended March 31, 2000. The Company expects
to recognize defendant payment revenue in future periods as the Unresolved
Avoidance Claims are prosecuted, settled further, or both. However, there can be
no assurance that the Company will recognize any further defendant payment
revenue.

     The Company also recognizes income from interest earned on Avoidance Claim
Proceeds. The Company invests Avoidance Claim Proceeds in a money market fund
investing solely in direct obligations of the United States Government. The
Members Agreement permits all funds received by the Company to be temporarily
invested in United States treasury bills and notes with maturities of 12 months
or less, institutional money market funds, and demand or time deposits with U.S.
federal or state commercial banks having primary capital of not less than $500
million. During the years ended December 31, 1999 and 1998, and the period ended
December 31, 1997, the Company recognized approximately $92,000, $388,000 and
$106,000 of interest income, respectively. During the three month periods ended
March 31, 2000 and 1999, the Company recognized approximately $24,300 and
$24,800 of interest income, respectively. The amount of interest income
recognized by the Company in future periods will be dependent on, among other
things, (1) fluctuations in interest rates, (2) the amounts and timing of any
Avoidance Claims Proceeds received in the future, (3) the amounts and timing of
any distributions to holders of Class A Membership Units, and (4) the amount and
timing of the Company's expenses.

     The Company's expenses consist primarily of fees payable to the Company's
lawyers and accountants, insurance expenses, the Transfer Agent and the Manager.
The Company had expenses of approximately $299,000, $671,000 and $176,000 for
the years ended December 31, 1999 and 1998, and the period ended December 31,
1997, respectively.

                                       8
<PAGE>

During the three month periods ended March 31, 2000 and 1999, the Company had
expenses of approximately $79,750 and $50,260, respectively. These expenses are
expected to fluctuate in future periods primarily based on activity in any
period in the D & B Spinoff Litigation.

    The Company and EBS Pension, L.L.C. (another limited liability company
formed pursuant to the Plan) have agreed to indemnify the Debtors (as defined in
the Plan) and their present or former officers, directors and employees from and
against any losses, claims, damages or liabilities by reason of any actions
arising from or relating to the Company and any actions taken or proceeding
commenced by the Company (other than with respect to any Unresolved Avoidance
Claims that the Company may have against such persons other than in their
capacities as officers, directors or employees of the Debtors). Indemnification
must first be sought from any applicable officers' and directors' insurance
policy, and then from the $1.5 million reserve established by EBS Pension L.L.C.
Although to date there has not been any indemnification claim, there can be no
assurance such a claim will not be made in the future. All liabilities of the
Company, including the foregoing indemnification obligations, will be satisfied
from the Company's assets.

     At December 31, 1999, 1998 and 1997, the Company had cash and cash
equivalents of approximately $1.9 million, $3.0 million and $12.0 million,
respectively. At March 31, 2000, the Company had cash and cash equivalents of
approximately $1.9 million. During 1999, the company distributed an aggregate
amount of $0.8 million to holders of Class A Membership Units. The amount and
timing of any future distributions of Avoidance Claim Proceeds will be
determined by the Manager in accordance with the term of the Members Agreement.
There can be no assurance as to the amount (if any) of any further distributions
that will be made.

     As of the date of this report, the Company's lawyers completed third-party
discovery, including depositions of former officers and directors of Edison, and
third-party discovery closed on March 31, 2000, pursuant to court order. On or
about March 29, 2000, the Class Representatives (D&B Stock is held by
approximately 2,500 different individuals and entities. These include Barclays
Global Investors, N.A., Greentree Partners, Greenway Partners, Wilshire
Associates, Inc. and WKW Asset Management, which are referred to herein as the
"Class Representatives.") filed a purported third-party complaint against former
directors of Edison, former and current directors of Dave & Busters, Inc. and
against Dave & Busters, Inc. The complaint purports to allege claims for breach
of fiduciary duties, aiding and abetting breaches of fiduciary duties and for
contribution or "subrogation." Because these claims might have implicated the
indemnification provisions described above, the claims were reviewed in detail
by the Company's lawyers, and found to be without substantial merit. While there
can be no assurances of the Company's success, the Company intends to oppose
joinder of these claims in the D&B Spin-off Litigation (as defined in the Plan).

     The Company is classified as a partnership for federal income tax purposes
and, therefore, does not pay taxes. Instead, the Members pay taxes on their
proportionate share of the Company's income.

Quarterly Results

Three Months Ended March 31, 2000 Compared to the Three Months Ended March 31,
1999

     Total revenues for the three months ended March 31, 2000 and 1999 were
$24,261 and $24,797, respectively. This decrease is due to the lack of receipt
of D & B Spinoff Settlement Proceeds and expenses during the normal course of
operations.

     Total expenses increased $29,491 due primarily to an increase in legal and
accounting fees due to the increase in activity during the period while trying
to resolve settlement issues.

                                       9
<PAGE>

                          PART II. OTHER INFORMATION


Item 1.  Legal Proceedings.

     Other than the D&B Spinoff Litigation referenced elsewhere herein, the
Company is not involved in any legal proceedings.

Item 6.  Exhibits and Reports on Form 8-K.

  (A)    Exhibits     Description
         --------     -----------

             2.1*     Amended Joint Plan of Reorganization of Edison Brothers
                      Stores, Inc.

             3.1*     EBS Litigation, L.L.C. Certificate of Formation

             3.2*     EBS Litigation, L.L.C. Membership Agreement

             27.1     Financial Data Schedule


*  Incorporated by reference to the same numbered exhibit filed with the
   Registrant's Registration Statement on Form 10 originally filed with the SEC
   on July 29, 1998 (SEC File No. 000-24711)


   (B)   Reports on Form 8-K

           None.

                                       10
<PAGE>

                                   Signatures
                                   ----------

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                    EBS LITIGATION, L.L.C.



                                    /s/ Peter N. Wang
                                    ---------------------------------
Date: May 15, 2000                  Peter N. Wang, Manager


                                       11