Inotiv ($NOTV) $8.75M Investor Settlement
Inotiv has agreed to an $8.75M settlement with $NOTV investors to resolve claims that it misled them over the company’s acquisition of Envigo and failed to disclose related regulatory and operational risks.
Outline:
Inotiv acquired Envigo while investors say serious compliance issues at a major facility were not disclosed. The claims focused on animal welfare violations and related regulatory risks tied to the acquisition. After federal authorities raided the facility and Inotiv later announced its closure, $NOTV declined significantly. Investors filed suit and the company later agreed to an $8.75 million settlement.
Timeline:
September 21, 2021: Inotiv announced its acquisition of Envigo.
November 4, 2021: The merger was approved by shareholders.
May 20, 2022: Federal authorities raided Envigo’s facility citing animal welfare violations.
May 23, 2022: $NOTV fell as the fallout from the raid became public.
September 2025: Inotiv agreed to an $8.75 million cash settlement.
Background:
Inotiv is a pharmaceutical and biotechnology research company that acquired Envigo RMS Holding Corp. in a transaction announced in September 2021 and approved by shareholders in November 2021. Envigo operated facilities that bred and sold animals for research purposes, a business subject to regulation under the Animal Welfare Act.
Investors later alleged that one of Envigo’s largest facilities, located in Cumberland, Virginia, had ongoing animal welfare problems and had been cited for numerous violations. According to the allegations, those issues included inadequate veterinary care, unsanitary conditions, and excessive animal deaths.
Shareholders alleged that Inotiv failed to disclose these regulatory and operational risks in public filings and investor communications before and after the merger. Investors claimed the company did not provide an accurate picture of the liabilities tied to the Envigo acquisition.
On May 20, 2022, federal authorities, including the Department of Justice, USDA, and local law enforcement, raided the Cumberland facility and seized more than 4,000 beagles due to inhumane conditions. Inotiv later announced it would permanently close the facility, and investors alleged these events revealed risks that should have been disclosed earlier.
What Can Investors Expect Now?
Inotiv agreed to an $8.75 million settlement with $NOTV investors to resolve claims tied to its acquisition of Envigo and related regulatory and operational risks.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
All persons and entities who purchased or otherwise acquired shares of Inotiv, common stock between September 21, 2021 and May 20, 2022, inclusive, and were damaged thereby, and/or held shares of Inotiv common stock as of the record date of October 4, 2021 and were entitled to vote on the acquisition of Envigo RMS, LLC at the November 4, 2021 special meeting.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.47 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $1.88 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.