By Lance Duroni

Law360, Wilmington (January 06, 2012, 8:17 PM ET) -- A Delaware judge on Thursday ordered China MediaExpress Holdings Inc. to open its books to a shareholder investigating widespread suspicions of fraud and mismanagement at the Hong Kong-based advertising company.

In a 25-page opinion filed in Delaware Chancery Court, Vice Chancellor Donald F. Parsons granted shareholder Marc Paul’s demand to inspect China MediaExpress’ records, finding Paul had shown “a credible basis for suspected wrongdoing.”

China MediaExpress’ fortunes began unraveling in January 2011, when several financial analysts and shortsellers issued reports alleging the company was fudging its...