Originally Posted by
Colonel_Klink
From this article, it seems like ASIC is suing for issues regarding the 2023 non disclosure of a profit downgrade - not all of the other shenanigans that have been talked about in this thread!
Hopefully this is just scratching the surface and that the chickens come home to roost with this mob!
I suspect that this is a case of low-hanging fruit, as proving the FY23 non-disclosure is pretty much a lay-down misere. Rex set themselves up for trouble when, barely a month into FY23, they started releasing bullish profit guidance. I think that most of us remember the announcements of increased and purportedly increasing profitability that were based on "unaudited management accounts".
As soon as any publicly traded business issues a positive profit guidance, they create an obligation to correct said guidance as soon as they become aware that it needs revision. After about six months of the "Rivers of Gold" announcements Rex then went silent on the topic until just 10 days before the end of the financial year, when they issued a downgrade.
The ASIC case is easy to prosecute; if Rex were able to produce positive guidance on a monthly basis, then it should have taken no more than a month to realise that that guidance needed revision.