WiseTech Global shares (ASX:WTC) experienced a significant decline following news of a regulatory investigation into alleged share trading activities by its Executive Chair, Richard White. The probe adds to existing concerns surrounding the company’s governance and leadership.
The logistics-software provider’s stock closed at A$71.52 on Tuesday, a 15.88% drop, making it the worst performer on the ASX200. This represents the lowest closing level for WiseTech shares since February 2024. Year-to-date, the stock has lost 40.92% of its value.
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The decline was triggered by the execution of a search warrant at WiseTech’s Sydney office by the Australian Federal Police (AFP) and the Australian Securities and Investments Commission (ASIC). The warrant sought documents related to allegations that Richard White engaged in share trading during a restricted period. Earlier reports had surfaced in Australian newspapers alleging that White sold millions of dollars worth of stock during such a period.
WiseTech has stated its intention to fully cooperate with the investigation. “WiseTech will fully cooperate and that it wasn’t aware of any allegations against the company,” the company said in a statement. ASIC has declined to comment, citing the ongoing nature of the investigation.
This latest development follows a period of turbulence for WiseTech. In October 2024, White stepped down as CEO amidst personal allegations. He later returned as Executive Chair in February 2025, a move that coincided with the resignation of several independent directors due to disagreements over his role.
In March, AustralianSuper divested its stake in WiseTech, expressing dissatisfaction with the handling of the leadership transition and governance practices. The company’s leadership structure has been under scrutiny, with ASIC initiating preliminary inquiries in February following the board resignations and White’s return as Executive Chair.
The ongoing investigation and past controversies have created a bearish sentiment in the markets. The combination of regulatory scrutiny and leadership concerns suggest continued volatility for WiseTech shares.
