Labaton Sucharow and two other law firms at the center of a growing public corruption scandal are in talks to settle their objections to a special master’s report in securities class actions against financial services provider, State Street Corp., according to court records.

The 377-page special master’s report, unsealed in June, highlighted a $4.1 million payment that New York-based Labaton made to Chargois & Herron, a Texas firm with ties to the Arkansas pension fund that is now lead plaintiff in a $300 million settlement with State Street. The report spurred a raft of court filings from Labaton and two other lead plaintiffs firms, the Thornton Law Firm in Boston and San Francisco’s Lieff Cabraser Heimann & Bernstein, objecting to the special master’s findings. Labaton has insisted the payment was legal.