Starr Investments, a firm run by former AIG chief Maurice Greenberg, has sued China MediaExpress Holdings , saying it was fraudulently induced to invest about $13.5 million in the firm, court documents show.

Starr has also sued China MediaExpress auditor Deloitte Touche Tohmatsu. The investment firm said the auditor had resigned as "it was no longer able to rely on the representations of the management."

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Deloitte Touche Tohmatsu had earlier recommended an independent probe into issues it encountered during its audit.

China MediaExpress has "significantly overstated the company's financial results in the period leading up to the purchase of shares," Starr said in the court filing.

Starr has also sued China MediaExpress Chief Executive Zheng Cheng and Jacky Lam, who recently resigned as chief financial officer. Starr sought compensatory damages from all the defendants, according to the court papers filed on March 18.

China MediaExpress was not immediately available for comment.

Trading in shares of China MediaExpress, a television advertising operator on inter-city and airport express buses in China, has been halted since March 11.

China MediaExpress was earlier accused of overstating its revenue by online research firm and short seller Muddy Waters.