The Supreme Court of New South Wales has found that Rex Airlines misled the stock market by claiming it would deliver strong financial results in 2023 before posting an eight-figure loss. Justice Ashley Black ruled that the Australian Securities and Investments Commission (ASIC) proved its allegations against Rex and former executive chairman Lim Kim Hai. The court determined that Rex did not have reasonable grounds to expect positive operating profits from April 14, 2023, onward, according to reports from bluewaterhealthyliving.com.

The legal action originated from an announcement made by Rex Airlines on the Australian Securities Exchange (ASX) on February 28, 2023, in which the company claimed it was optimistic about positive operating profits for the full fiscal year 2023. ASIC commenced proceedings in the Supreme Court of New South Wales against Rex Airlines and four board directors: Lim Kim Hai, John Sharp, Lincoln Pan, and Siddharth Khotkar, as reported by aerotime.aero.

While the court found against Rex and Lim Kim Hai, Justice Ashley Black ruled that ASIC did not prove its case against three former non-executive directors: John Sharp, Lincoln Pan, and Siddharth Khotkar, according to reports from gdelt. ASIC characterized the court ruling as a victory and stated the carrier was held to account. ASIC Chair Sarah Court stated that continuous disclosure is a core obligation for listed entities.

Rex Airlines entered voluntary administration in 2024 and was bought out by U.S. aviation services provider Air T in 2025, according to bluewaterhealthyliving.com.