Inoue's staff directed two groups of attack aircraft from Rabaul, already airborne since that morning, towards Crace's reported position. The first group included 12 torpedo-armed G4M bombers and the second group comprised 19 Mitsubishi G3M land attack aircraft armed with bombs. Both groups found and attacked Crace's ships at 14:30 and claimed to have sunk a "-type" battleship and damaged another battleship and cruiser. In reality, Crace's ships were undamaged and shot down four G4Ms. A short time later, three U.S. Army B-17s mistakenly bombed Crace, but caused no damage.