Medical research services provider Inotiv Inc. and its shareholders have asked an Indiana federal judge to sign off on an $8.75 million settlement, a deal aimed at resolving claims that the company misled investors about federal investigations into its subsidiaries’ alleged animal welfare and smuggling violations.
Settlement Outpaces Typical Recoveries
According to court filings Thursday, the fund represents 13.5% of total alleged damages—a recovery percentage that surpasses the median in similar securities class actions. Lead counsel for the investor class plans to seek 25% of the settlement, roughly $2.2 million, in attorneys’ fees.
The agreement followed a full-day mediation and subsequent negotiations earlier this month. Without a settlement, the filing warns, the case could drag on for years, burning court resources and escalating costs with no guarantee of a better outcome.
Alleged Concealment of Federal Probes
The Oklahoma Police Pension and Retirement System, leading the investor class, claims that Inotiv and top executives failed to disclose critical information about ongoing investigations when acquiring Envigo RMS Holding Corp. and Orient Bio Resource Center (OBRC).
The omissions allegedly painted the deals as positive expansions while concealing disturbing facts: Envigo was later accused of operating a puppy mill, and an OBRC executive pled guilty to lying about ties to an illegal primate smuggling operation.
