ASIC takes legal action against Regional Express and directors over investor misrepresentation

The Australian Securities and Investment Commission (ASIC) has taken legal action against Regional Express (Rex) and four of its directors for allegedly misleading investors before the airline's collapse. This marks a shift in ASIC's approach, which has focused on smaller targets in the past. ASIC claims that Rex's executive chairman, Lim Kim Hai, misrepresented the airline's profitability in a February 2023 statement. The regulator alleges that the directors failed to update the market about significant losses later that year. This case, set for the NSW Supreme Court, indicates ASIC's renewed commitment to enforcement under chair Joe Longo. It contrasts sharply with previous inaction following the Global Financial Crisis, where complaints from liquidators went largely unaddressed.