ASIC Sues Rex Airlines and Directors Over Alleged Misleading Conduct

The corporate regulator accuses the collapsed airline and four directors of failing to disclose financial losses and misleading investors in 2023.

The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against Regional Express (Rex) and four of its directors for allegedly misleading the market about the airline's financial prospects in early 2023.
ASIC claims that a February 2023 statement to the ASX projecting operating profits for the year was made without a reasonable basis, as the airline had been incurring losses and lacked financial forecasts to support the claim.
The lawsuit names former executive chairman Lim Kim Hai, current chairman John Sharp, and directors Lincoln Pan and Siddharth Khotkar, alleging they breached disclosure obligations and failed to ensure accurate market updates.
Rex announced a $35 million profit downgrade in June 2023 and entered voluntary administration in July, with its regional services now supported by an $80 million federal government funding package.
ASIC is seeking penalties and disqualification for the directors, citing serious governance failures, while the administrators overseeing Rex’s operations have declined to comment on the legal proceedings.