According to the invaluable Amanda Bronstad of the NLJ:

Federal prosecutors who indicted Milberg Weiss Bershad & Schulman last month are in talks with a Denver lawyer whose testimony could sharpen the investigation's focus toward Melvyn Weiss, founding partner of the New York-based law firm, according to sources familiar with the government's probe.

Read the whole thing here.Things just keep getting worse for the firm. An indictment against the founding partner would make the already severe damage they have suffered even more grave. Stay tuned for further developments.