SEC Sues China MediaExpress Over False Financials

Law360, New York (June 20, 2013, 4:20 PM EDT) -- The U.S. Securities and Exchange Commission on Thursday slapped China MediaExpress Holdings Inc. with a suit in Washington federal court accusing the advertising company of grossly exaggerating its finances, echoing allegations from shareholder litigation that it duped investors and artificially spiked its stock prices.

China MediaExpress "massively overstated its cash balances" after it entered the public market in 2009, touting balances that overshot reality by 452 to over 40,000 percent, according to the complaint. The SEC's action is the latest in a series of complaints filed...
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