The BL Lac family of active galaxies possess almost featureless spectra and
exhibit rapid variability over their entire spectral range. A number of mo
dels have been developed to explain these extreme properties, several of wh
ich have invoked the action of microlensing by substellar mass objects in a
foreground galaxy; this not only introduces variability, but also amplifie
s an otherwise normal quasar source. Here we present recent spectroscopy an
d photometry of the southern BL Lac PKS 0537-441; with an inferred redshift
of z similar to 0.9, it represents one of the most distant and most lumino
us members of the BL Lac family, The goal of the observations was not only
to confirm the redshift of PKS 0537-441, but also to determine the redshift
of a putative galaxy along the line of sight to the BL Lac object; it has
been proposed that this galaxy is the host of microlensing stars that accou
nt for PKS 0537-441's extreme properties. While several observations have f
ailed to detect any extended emission in PKS 0537-441, the Hubble Space Tel
escope (HST) imaging data presented here indicate the presence of a galacti
c component, although we fail to identify any absorption features that reve
al the redshift of the emission. We also note that PKS 0537-441 is accompan
ied by several small but extended companions, located a few arcseconds from
the pointlike BL Lac source. Two possibilities present themselves: either
they represent true companions of PKS 0537-441, or are themselves gravitati
onally lensed images of more distant sources.