As expected, the law firm Milberg Weiss Bershad & Schulman and two of its partners were indicted yesterday.  The firm quickly shot back through a new website--Milberg Weiss Justice--and declared that the indictment was unjust, misguided, and misinformed.

The WSJ Law Blog reports that today, the State of Ohio became what appears to be the first Milberg client to defect following the indictment, firing Milberg Weiss in its securities litigation against Putnam American Government Income Fund related to alleged improper mutual-fund trading.  The Law Blog says that

In the letter to firm co-founder Melvyn Weiss, Attorney General Jim Petro writes: “Because the law firm of Milberg Weiss was criminally indicted yesterday by a federal grand jury in the Central District of California, the Ohio Attorney General’s office feels that your representation, as well as that of your firm, of our clients in this matter will be severely compromised.”

Basically no good news right now for Milberg Weiss.  Wait, I take that back--according to this article in the NY Sun, NY Attorney General Elliot Spitzer is hastily returning tens of thousands of dollars in campaign contributions received from Milberg Weiss and the indicted partners.