Here is the Associated Press story. More later.
UPDATE: Here are the available documents from PACER.
SECOND UPDATE: The Scruggs Law Firm, citing the pending criminal charges, has withdrawn from Katrina cases. Click here to see the letter to clients on the Scruggs Katrina Group website.
THIRD UPDATE: Motions by the Scruggs firm to withdraw from Katrina cases are already showing up. Click here to see one such motion is a well-known case, McIntosh v. State Farm.