Richard White has resigned as executive chair of WiseTech, the Australian tech company he co-founded, denying allegations he exploited a worker’s financial and visa status for sex.

White will stay on as a board director and chief innovation officer, with Raelene Murphy replacing him as chair, the company announced on Tuesday.

The announcement offered a refresh for the embattled software company, sending its share price up 8.1% on Tuesday afternoon, adding nearly $1bn to its market value.

WiseTech had collapsed in value over the prior 12 months – the company was worth more than $40bn in July 2025 but less than $13bn on Tuesday.

Investors sold out in June after the Nine newspapers reported police were investigating allegations White coerced a cleaner into a sexual relationship and provided false information for her visa application.

In a WiseTech statement on Tuesday, White rejected the claims and said they could encourage traders to bet against the company.

“Recent personal media attention is creating an unnecessary distraction from the strength of WiseTech’s business,” he said.

“As I have stated previously, I strenuously and unequivocally deny the recent allegations in the media.”

White said he would focus on WiseTech’s growth strategy as he continued as chief innovation officer. The software-as-a-service company has come under pressure from AI and began laying off 30% of its workforce in May.

While the AI boom has hurt WiseTech’s market value, scrutiny of its co-founder has added to investor concerns and weighed on its share price.

White stepped down as chief executive in 2024, after weeks of damaging revelations about his personal life hammered the software company’s reputation. A company-ordered review in November 2024 cleared him of bullying and intimidation allegations.

He returned to leadership as executive chair in February 2025 after four board members resigned over intractable disagreement at his ongoing role. WiseTech’s gradual replacement of the lost directors resulted in the appointment of Murphy, now the incoming chair, to the board in January.

Murphy defended White in WiseTech’s statement on Tuesday.

“My personal experience working with Richard is totally at odds with media reports,” Murphy said. “I have found him to be an incredibly hardworking, focused and committed founder who has built a leading global technology business with enormous potential to continue to grow stronger and thrive.”

Murphy said the board wanted to keep White’s “depth of experience” but would focus on planning for executive succession. Tuesday’s statement singled out “strong leadership” from the chief executive, Zubin Appoo, in succession planning.

Jackson Lee, an RBC Capital Markets analyst, said White’s step down was “another step in the right direction” but investors would want proof of improved governance before buying back in, in a note on Tuesday.

“The market will likely want to see ongoing evidence that the refreshed board, CEO, and chief innovation officer operate independently,” he said.