March 22 Starr Investments, a firm run by former
AIG chief Maurice Greenberg, has sued China MediaExpress
Holdings , saying it was fraudulently induced to invest
about $13.5 million in the firm, court documents show.
Starr has also sued China MediaExpress auditor Deloitte
Touche Tohmatsu. The investment firm said the auditor had
resigned as "it was no longer able to rely on the
representations of the management."
Deloitte Touche Tohmatsu had earlier recommended an
independent probe into issues it encountered during its audit.
China MediaExpress has "significantly overstated the
company's financial results in the period leading up to the
purchase of shares," Starr said in the court filing.
Starr has also sued China MediaExpress Chief Executive Zheng
Cheng and Jacky Lam, who recently resigned as chief financial
officer. Starr sought compensatory damages from all the
defendants, according to the court papers filed on March 18.
China MediaExpress was not immediately available for
Trading in shares of China MediaExpress, a television
advertising operator on inter-city and airport express buses in
China, has been halted since March 11.
China MediaExpress was earlier accused of overstating its
revenue by online research firm and short seller Muddy
The case is in re Starr Investments vs China MediaExpress et
al, Case No. 1:11-cv-00233-UNA, U.S. District Court, District of
(Reporting by Sakthi Prasad in Bangalore; Editing by