Australian authorities raid WiseTech over founder’s alleged share dealings, stock plunges

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By Sneha Kumar

(Reuters) -Australia’s corporate regulator and the federal police raided tech firm WiseTech Global’s Sydney office, investigating alleged trading in shares by founder Richard White and three employees, sending shares to an over-six-month low.

Shares of the logistics software maker slipped nearly 17% to A$70.60 as of 2355 GMT on Tuesday, their weakest level in more than six months.

The company said the allegations against founder Richard White and three employees are for trading in the company’s shares from late 2024 to early 2025. 

A spokesperson for the Australian Securities and Investments Commission confirmed, in an emailed response, that it had executed search warrants as part of an ongoing investigation with the Australian Federal Police, but declined to comment further. 

In February, the ASIC initiated “preliminary inquiries” into the logistics software maker following a mass exodus of executives and the surprise return of White as the chairman. 

Media reports suggested it was because the billionaire founder and former chief executive had sold more than A$200 million ($129.96 million) of shares during a blackout period and without informing the market.

Last year, between October 2 and December 20, White sold 3.6 million WiseTech shares, resulting in a decrease in shareholding to 36.63% from 37.7%, according to an exchange filing from December.

White has been embroiled in controversy since October 2024, when he stepped down from the role after multiple media reports of allegations about his personal life, including payments to a past sexual partner.   

WiseTech has also been facing a broader crisis involving corporate governance concerns and share volatility, which led to a 40% slump in share value so far this year.

“It’s very disappointing for long-term shareholders, and shareholders will be questioning how much further WiseTech shares can fall,” said Jessica Amir, market strategist at moomoo.

“When this is being sensationalised as well, it puts pressure on the stock.”

The Australian Federal Police referred to the ASIC’s media unit when contacted by Reuters for comment. 

($1 = 1.5389 Australian dollars)

(Reporting by Sneha Kumar in Bengaluru; Editing by Maju Samuel and Alan Barona)