Richard White has resigned as executive chair of WiseTech, the Australian software company he co-founded, after police began investigating allegations that he exploited a cleaner's financial and visa status for sex. White denies the claims, which he says are an "unnecessary distraction" from the company's business strength.

The move, announced Tuesday, sent WiseTech's share price up 8.1%, adding nearly $1 billion to its market value. That's a nice rebound from the past year, during which the company's worth collapsed from over $40 billion in July 2025 to less than $13 billion before the announcement.

White will stay on as a board director and chief innovation officer, while Raelene Murphy replaces him as chair. Murphy defended White, saying her "personal experience working with Richard is totally at odds with media reports." The board wants to keep White's "depth of experience" but will focus on succession planning, she said.

Investors had sold out in June after reports that police were investigating White for allegedly coercing a cleaner into a sexual relationship and providing false information for her visa application. The company also faces pressure from the AI boom, which has hurt its market value, and began laying off 30% of its workforce in May.

Jackson Lee, an RBC Capital Markets analyst, called White's step-down "another step in the right direction" but said investors will want proof of improved governance before buying back in. The market, he noted, will likely want to see independent operation from the refreshed board, CEO Zubin Appoo, and the chief innovation officer.