Inotiv $8.75 Million Securities Class Action Settlement

Shareholders who purchased or otherwise acquired Inotiv Inc. common stock between Sept. 21, 2021, and May 20, 2022, or held Inotiv common stock as of Oct. 4, 2021, and were entitled to vote on matters related to Inotiv’s acquisition of Envigo RMS may be eligible to claim a cash payment from a class action settlement.

Inotiv Inc. agreed to pay $8,750,000 to settle a class action lawsuit alleging it and certain executives violated federal securities laws by making false or misleading statements and omissions regarding the company’s 2021 acquisition of Envigo RMS. The lawsuit claimed these actions inflated Inotiv’s stock price and caused investor losses when corrective information reached the market.

Who can file a claim?

Class members must meet one of the following criteria:

• They purchased or otherwise acquired Inotiv common stock (ticker: NOTV) between Sept. 21, 2021, and May 20, 2022, inclusive.
• They held Inotiv common stock as of the Oct. 4, 2021 record date and were entitled to vote on matters necessary to complete the Envigo RMS acquisition.

Additional information

• Both individuals and entities can be class members.
• Financial institutions, nominees or other custodians that purchased Inotiv common stock on behalf of beneficial owners must either forward the notice to those investors or provide the claims administrator with the beneficial owners’ names and addresses within 10 days of receiving the postcard notice.

How much is the securities payout?

• The total settlement fund is $8,750,000. Each class member’s payment depends on several factors:
• The total number of valid claims filed
• The number of Inotiv common shares the member purchased, sold or held
• The timing and prices of those transactions during the class period
• The total recognized losses of all claimants

• The settlement administrator distributes payments on a pro rata basis according to a court-approved plan of allocation.
• The estimated average recovery before deducting court-approved fees and expenses equals $0.47 per allegedly damaged share of Inotiv common stock.
• The settlement administrator calculates each claimant’s award using formulas in the plan of allocation. These formulas evaluate when the claimant bought, sold or held Inotiv shares during periods of alleged artificial inflation:
• Shares sold before May 23, 2022, have a recognized loss of $0.
• Shares sold between May 23 and Aug. 18, 2022, have a recognized loss equal to the lesser of $5.86, the purchase price minus the sale price or the purchase price minus the statutory 90-day lookback value on the sale date.
• Shares held through Aug. 18, 2022, have a recognized loss equal to the lesser of $5.86 or the purchase price minus $15.30 (the average closing price during the 90-day lookback period).
• Shares held as of Oct. 4, 2021, and still held through May 20, 2022, have a recognized loss of $5.86 per share.

• The plan defines these recognized losses to reflect how long investors held shares during periods of alleged artificial inflation.

• If total recognized losses exceed the net settlement fund, the settlement administrator reduces all payments on a pro rata basis.
• Claimants with a calculated payment of less than $10 will not receive a payout.

How to claim a settlement payment

Class members can file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is March 2, 2026.

Settlement administrator's mailing address: Inotiv Inc. Securities Litigation, c/o Claims Administrator, 1650 Arch St., Suite 2210 Philadelphia, PA 19103

Is proof or documentation required to submit a claim?

• All class members must provide the last four digits of their Social Security number or their full taxpayer identification number.
• They must also provide purchase, acquisition, and sale information, including:
• Trade dates
• Number of shares purchased, acquired or sold
• Total purchase, sale or acquisition price

• Claimants must include documentation to support their transactions in Inotiv common stock. Acceptable forms of proof include:
• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing the same transactional details found in a confirmation slip
• Other documentation the claims administrator deems adequate

$8.75 million settlement fund

The $8,750,000 settlement fund includes:

• Notice and administration costs: To be determined
• Attorneys’ fees: Up to $2,187,500
• Attorneys’ expenses: Up to $120,000
• Service awards to class representatives: Up to $7,500 total
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to request exclusion: Jan. 6, 2026
• Fairness hearing: Jan. 27, 2026
• Deadline to file a claim: March 2, 2026

When is the Inotiv securities settlement payout date?

The settlement administrator will issue payments to eligible claimants after it processes all claims and the court grants final approval of the settlement and resolves any appeals.

Why is there a class action settlement?

The class action lawsuit alleged Inotiv and certain executives made false or misleading statements about the company’s acquisition of Envigo RMS and related business practices, which artificially inflated the price of Inotiv common stock. When the alleged misrepresentations became public, the value of Inotiv stock declined, causing investor losses.

The defendants denied all allegations of wrongdoing and liability but agreed to settle to avoid the costs, risks and delays of further litigation.

Sources

1. Claim notice
2. Claim form
3. Settlement agreement
4. Settlement FAQ