Brothers Thomas and Florian Haffa and other executives at troubled German media concern EM.TV & Merchandising are being investigated by Munich state prosecutor Manfred Wick for alleged breaches of securities law.

EM.TV spokesman Michael Birnbaum declared that the books of the licence trader would be open to the investigating authority as part of a "complete co-operation". Seven lawsuits have been filed by investor groups alleging that the management concealed the true extent of the concern's financial problems.

In addition, investor group DSW is also considering filing a lawsuit against the consortium of banks led by WestLB which had advised EM.TV in its moves to raise additional capital over the last two years.

Dogged by persistently negative headlines, the former stockmarket darling's share slipped by over another 8% to Euros5.74 at the end of trading on December 15.