Lawyers at Hengeler Mueller and Gleiss Lutz are facing a fraud probe, after German prosecutors today (25 March) launched an investigation into allegations that misleading evidence was presented in a case involving the firms' client Deutsche Bank.

The launch of the investigation, first reported on Reuters, was acknowledged by a Hengeler spokesperson, who declined to comment further.

According to press reports Hengeler's Frankfurt office and Gleiss' Munich office were searched last week as part of an investigation by German prosecutors into Deutsche's legal battle with the heirs of media mogul Leo Kirch.

German authorities – which have also conducted searches of the bank – are investigating allegations that Deutsche board members gave misleading evidence in a case which settled last month.

In February, the bank agreed to pay €775m (£649m) plus costs to Kirch's heirs in relation to a long-running dispute over the collapse of his empire.

For the case, Deutsche instructed Hengeler partners Peter Heckel and Markus Meier and Gleiss Lutz counsel Luidger Rockrath.

The late media magnate alleged that the 2002 downfall of KirchMedia was precipitated by comments from the bank's former Deutsche chief executive and later chairman, Rolf Breuer, arguing that the bank had questioned the company's creditworthiness in a television interview.

Since the case closed, prosecutors in Munich have been investigating claims Deutsche executives lied in testimonies which were later heard in court.

A spokesperson for the Munich prosecutor confirmed it had launched an investigation against individual lawyers at the firms.