The New South Wales Supreme Court ruled 30 June 2026 that collapsed regional carrier Rex breached continuous disclosure obligations by failing to promptly inform the market of a $35 million profit downgrade in June 2023, following an optimistic February 2023 forecast lacking reasonable grounds. The court found Rex misled investors by claiming positive operating profits for FY23 despite operational losses, delaying disclosure until 20 June when it forecast a $35 million loss. Former executive chair Lim Kim Hai admitted director duty breaches and awaits penalties, while three non-executive directors were cleared of breaches. ASIC lost its misleading conduct case against Rex and the three directors, limiting liability scope. The ruling sets a precedent for ASIC enforcement on timely profit disclosure in aviation, particularly for regional operators facing losses.