L.A. Observed has learned that former staffers in the Los Angeles office of Fleishman-Hillard have been getting friendly calls from the St. Louis home office, requesting their cooperation in an internal investigation of the agency's PR contracts with City Hall. The investigation is being conducted by attorneys at Munger, Tolles and Olson (not Latham and Watkins, as a source first reported). The ex-staffers anticipate being asked about billing practices and other details of how Fleishman's L.A. office managed the controversial contracts with the Department of Water, Port of L.A. and airports department. That is, if they choose to cooperate -- which seems unlikely given the unpleasant circumstances under which many of them left the firm. Said one: "Fleishman wants to find out how much exposure they have and what the grand juries are hearing. But what's in it for me?"

* Edited 11:30 a.m.

Previously on L.A. Observed: The view from St. Louis, Fleishman throws in the towel, Subpoenas for Fleishman