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Inotiv Reaches Agreement to Resolve Previously-Announced Investigation into Shuttered Cumberland Facility
Company reaffirms commitment to maintaining appropriate standards of animal welfare WEST LAFAYETTE, Ind., June 03, 2024 (GLOBE NEWSWIRE) -- Inotiv Inc. –
About this update from Inotiv, Inc.
[{"type":"text","content":"Company reaffirms commitment to maintaining appropriate standards of animal welfare\nWEST LAFAYETTE, Ind., June 03, 2024 (GLOBE NEWSWIRE) -- Inotiv Inc. – Inotiv Inc. (“Inotiv” or the “Company”) (Nasdaq: NOTV), a leading contract research organization dedicated to providing nonclinical and analytical drug discovery and development services and research models, today announced that it reached an agreement with the U.S. Department of Justice (“DOJ”) to resolve a previously-announced criminal investigation into the shuttered canine breeding facility located in Cumberland, Virginia, which was operated originally by Envigo RMS LLC (“Envigo”), a company acquired by Inotiv in November 2021. Before the United States District Court for the Western District of Virginia, Envigo RMS pleaded guilty to one misdemeanor count of conspiracy to violate the Animal Welfare Act and Envigo Global Services, Inc. pleaded guilty to one felony count of conspiracy to violate the Clean Water Act. Inotiv issued the following statement: “Today’s agreement will allow us to comprehensively resolve this matter, bringing to an end uncertainty around the investigation, and enabling the Company to focus our full attention on providing our customers with the tools and solutions they need to conduct critical drug discovery and development efforts that are essential to saving human lives. “Inotiv’s top priority has always been – and remains – practicing appropriate standards of animal welfare for our animals, while supporting the scientific objectives of the studies conducted. We strive to maintain facilities that are compliant with applicable federal, state, and local laws and regulations and consistent with our core value to always do the right thing. That is why we worked to reach this agreement, and why we have agreed to go above and beyond those legal requirements.” Under the terms of the resolution, Inotiv agreed to make payments totaling $22 million in fines, to be paid over a four-year period between 2025 and 2028. The first payment is due June of 2025. Additionally, Inotiv agreed to continue to make improvements to facilities and personnel related to the welfare of animals and will invest a minimum of $7 million in these improvements over a period of three years, which is considered by the Company to be in the ordinary course of business. As part of this res...