Deals
China MediaExpress a Fraud, Hong Kong Arbitration Rules
This article is for subscribers only.
China MediaExpress Holdings Inc., which obtained a U.S. stock listing without an initial public offering by buying a listed company, was a fraudulent enterprise, a Hong Kong arbitration panel ruled, awarding Starr International Co. as much as $77 million in damages.
Starr, a firm run by former American International Group Inc. Chief Executive Officer Maurice “Hank” Greenberg, sued China MediaExpress, or CME, and its auditor Deloitte Touche Tohmatsu in Delaware in 2011, claiming Starr was fradulently induced into investing in the Chinese company, whose shares have been delisted.