Replies to post #30317 on China MediaExpress Holdings, Inc. (fka CCME)

[upwardmo]

Thanks for posting that. Interesting to see that defendant CCME's lawyers bring up the same points several of us did regarding Starr's reference solely to short-sellers' and bloggers' accusations in its claims of fraud against CCME.

[bullmarkets]

By the way, on the issue of what language does Zheng Cheng speak, for whoever was saying someone here might be Cheng Zheng himself, check out line 7 in the motion papers from CCME's attorneys:

"Defendant Mr. Cheng is a citizen and resident of China and
does not speak English" (emphasis added)

-Andrew

[bullmarkets]

Reganwould: Thank you for posting legal case documents. Lines 8, 9 and 12 start to lay some foundation for what CCME's attorneys may well plan to argue and what may possibly even be the truth. They are to the point and a welcomed read for every CCME shareholder. This is the first time CCME expresses in a court-filed legal document that the claims against CCME are based on short sellers concocted anonymous self-serving allegations, and that Dong's resignation was also self-serving.

From Paragraph 8: "Plaintiff claims that the Company is a fraud. With minor exception, Plaintiff bases these serious allegations not on its own knowledge or investigation, but on the claims of others, most of whom are either anonymous bloggers, short sellers who stand to profit by driving down the stock price, or persons believed to be working in concert with short sellers. The minor exception noted above refers to Plaintiff’s quotation from the resignation letter of a former Company director. Those comments are entirely self-serving, however, coming as they do from Plaintiff’s designee on the Board and only days before the Complaint was filed."

-Andrew

[swampdonkey]

good work Andrew & Reganwould

[bullmarkets]

How much in the US bank account?

Interesting question-- what is the extent of the US assets under discussion. The CCME motion papers said there was just one bank account in the US. Is that the one they pay fees to US lawyers, certain other professional fees, Membership fees at 24 hour fitness, the YMCA, or wherever the company execs stay when they visit the US to ring a bell, or what? How much money is in that account? If it's truly significant in size, it could possibly reflect the anticipated 5-10% of net profit dividend intended to have been paid to shareholders had the BOD accepted the 2010 financials?

CCME Motion Papers Paragraph 12: "Plaintiff pointed to no transfers out of the Company’s one bank account in the United States that were not made in the ordinary course of business or were in any way
fraudulent."

-Andrew