WiseTech Global's stock plummeted 6.59% during intraday trading on Monday.

The sharp decline followed reports that the company's Executive Chairman Richard White is under an Australian federal police investigation over allegations that he coerced a former cleaner at the company into a sexual relationship, according to the Australian Financial Review. The police probe was launched earlier this year following a complaint alleging White falsified information on a visa application for the former cleaner.

Such investigations into key executives typically create uncertainty about corporate governance and leadership stability, which can prompt investors to reduce their exposure to the stock.