Rumors
Director: Neal Israel
Writer: Melissa Gould
Executive Producers: Stan Rogow & Susan Estelle Jansen
Consulting Producers: Douglas Tuber & Tim Maile
Producer: Jill Danton
First Aired: 1/12/2001

Summary
Lizzie tries out for cheerleader but doesn't do very well. Later that night she and Miranda chat online. Lizzie jokes that Kate made the squad because she stuffs her bra. Miranda accidentally sends out the message to everyone on the class roster. The next day at school Kate is furious about the taunting she's receiving and confronts Lizzie and Miranda, demanding to know who is responsible. Lizzie stutters and stammers for a few moments, then Miranda says that she did it. Kate promises to make her life miserable, and a war of dirty tricks breaks out between the two. Miranda tells Lizzie that she took the blame because Lizzie can't handle conflict. Lizzie feels guilty as the war between Miranda and Kate escalates. Finally Lizzie works up the nerve to take responsibility for the message and she stands up to Kate. Also, Matt brings home a lizard for a school project and names it Lizzie, much to his sister's annoyance. While Mr. and Mrs. McGuire are supposed to be watching the lizard, it dies.

Bloopers
- When Kate confronted Lizzie and Miranda to find out who wrote the instant message, Lizzie started getting all nervous, sweating and stuttering "I....I....I...." Kate just looked at her and said, "You what?" completely oblivious that Lizzie was guilty. It's almost impossible that Kate wouldn't see that and automatically be able to tell that it was Lizzie who wrote it.
- At lunch, Gordo mentions he doesn't like the broccoli. But in other episodes' lunch scenes, students can choose their food. If Gordo didn't like the broccoli, why did he get it?
- For the first twelve episodes, the blooper reel at the end has the title of the show listed on the clapboard is "What's Lizzie Thinking?" - this was the original name of the show.
- In the hallway scene, where Lizzie tries to confess to Kate she is wearing a red and white shirt without her blue purse. But in one shot, with the camera looking at Kate, the strap to the purse can be seen on her left shoulder just as it was a few moments later when Lizzie is walking to the pep rally with Miranda and Gordo.
- When Lizzie approaches Kate before the cheerleaders do their routine, a stage mark "X" is visible on the ground.
- Lizzie types "Because Kate stuffs her bra" on her instant message, but when Miranda accidentally sends it out, the "Because" has disappeared.