June 3, 2024

In May 2022, as previously reported and as part of a federal investigation, federal authorities conducted a search at the canine breeding facility in Cumberland County, Virginia, owned and operated by Envigo RMS, LLC, a company that had been acquired in November 2021 by Inotiv, Inc. Subsequent to the search, the United States brought a civil action to enjoin the company from transporting any dogs from the facility until it fully complied with the Animal Welfare Act. In June 2022, pursuant to an agreement resolving its civil liability with the United States, the company agreed to close the facility and allow the dogs to be rehomed. The facility ceased operations in September 2022.

On June 3, 2024, under a Plea Agreement and Resolution Agreement with the United States (through the U.S. Attorney for the Western District of Virginia and the Environmental Crimes Section of the United States Department of Justice, Environment and Natural Resources Division), Inotiv, Inc. agreed to accept responsibility for its conduct and agreed to the facts and allegations set forth in the charging document. In addition, its subsidiary, Envigo Global Services, Inc., pleaded guilty to conspiring to violate the Clean Water Act from January 1, 2020, through September 30, 2022, and its subsidiary, Envigo RMS, LLC, pleaded guilty to conspiring to violate the Animal Welfare Act from January 1, 2020, through May 18, 2022.

Pursuant to the Plea Agreement and Resolution Agreement, we will:

• Pay a criminal fine in the amount of $22 million, to be paid over the next four years;
• Make payments of approximately $1.1 million to the Virginia Animal Fighting Task Force and approximately $1.9 million to the Humane Society of the United States for direct assistance provided to the United States’ investigation;
• Make a payment of $3.5 million to the National Fish and Wildlife Foundation to benefit and restore the environment and ecosystems in Cumberland County, Virginia, at least $500,000 of which will be spent on purchasing riparian wetland or riparian land located in or near Cumberland, Virginia;
• Invest a minimum of $7 million over the next three years to continue to improve our facilities and personnel to exceed the standards imposed by the Animal Welfare Act;
• Pay all costs of a Compliance Monitor, who will ensure we comply with our obligations under the Plea Agreement and Resolution Agreement and all federal, state, and local laws;
• Continue to not breed dogs;
• Be subject to contempt proceedings if we violate any provision of the agreement; and
• Be placed on a period of probation for up to five years, with the potential to end the term early at a minimum of three years if we comply with all elements of the resolution.

In committing the crimes identified in the charging document, and by not making the necessary infrastructure upgrades and hiring the requisite staff, we fell short of our standards for animal and environmental welfare and apologize to the public for the harm caused by our conduct. In resolving this matter, we renew our commitment to maintaining the highest standards of animal care, as well as to the communities and environments in which we operate. We hope that others will learn from our experience.