Paul v. China MediaExpress Holdings, Inc.

After media reports alleged fraud at China MediaExpress (defendant), NASDAQ halted trading in its stock, and its independent auditor and three board members (including the CFO) resigned citing management and accounting concerns, shareholder Paul (plaintiff) sued in Delaware to inspect company books and records under Section 220 to investigate suspected fraud and mismanagement, while a separate federal securities suit against the company was also pending; the company sought to stay the state action pending resolution of a motion in the federal case.