June 22 - WiseTech Global’s shares dropped sharply on Monday after widespread media reports said Australian federal police had opened an inquiry into executive chairman Richard White. The coverage alleged White had exploited a woman’s immigration status for sex and provided false information on a visa application. The reports have not been independently verified.
The federal police said they would comment "at an appropriate time." WiseTech did not immediately respond to a request for comment.
Details circulating in media accounts indicate the investigation began earlier this year following a complaint from the former head of Kyckr, a separate company reportedly under White’s control. According to those accounts, the complainant alleged that White fabricated a reason to employ a woman who previously worked at WiseTech as a cleaner, and that he provided inaccurate information to government authorities in support of a visa application for her.
Market reaction was swift. Shares of the logistics software company fell as much as 14.6% to A$31.50, a level not seen since August 2021. During the trading session the stock was the largest decliner in the S&P/ASX 200 index, which was trading flat as of 0400 GMT.
Investors and market participants were left with limited confirmed information as authorities and the company refrained from providing further comment beyond the statements already issued. The combination of an ongoing inquiry and a lack of immediate corporate response corresponded with pronounced selling pressure on the stock during Monday’s trading.
Context summary
Media reports of a federal police investigation into allegations involving WiseTech’s founder coincided with a significant drop in the company’s share price. Authorities have indicated they will speak on the matter at an appropriate time, and the company did not immediately reply to requests for comment.