WiseTech shares rise after firm denies police probe

Shares of Australian logistics software giant WiseTech Global surged on Wednesday, recovering a portion of the steep losses suffered earlier in the week following reports of a police investigation into its founder and executive chairman, Richard White. The company publicly denied awareness of any formal investigation on Tuesday, sparking the rebound after a selloff that erased billions from its market value.

The stock had plummeted nearly 20% on Monday, hitting a multi-year low, after media reports indicated the Australian Federal Police's human exploitation taskforce was investigating White. The allegations, reported by several Australian news outlets, claim White exploited a Brazilian woman's immigration status for sex and provided false information to secure a visa for her. The complaint was reportedly made by Kathy Phelan, the former chief executive of Kyckr, another company White controls. White has emphatically denied any involvement in human trafficking, and no allegations have been proven in court.

The sharp decline extended a brutal period for WiseTech shares, which had already fallen roughly 73% over the preceding 12 months. Analysts framed the selloff as a crisis of...