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Inotiv plunges the most in eight months after disclosing DOJ-backed lawsuit

Life sciences company, Inotiv (NASDAQ:NOTV) has lost ~18% on Monday, the most since September, after announcing that the U.S. Department of Justice initiated legal action against one of its subsidiaries regarding alleged violations of animal welfare. The issues relate to a Cumberland, Virginia facility operated by Inotiv (NOTV) subsidiary Envigo RMS, LLC, which has come under multiple inspections by the U.S. Department of Agriculture. On Wednesday, DOJ with law enforcement agents, served a search and seizure warrant on the Cumberland, Virginia facility issued by the U.S. District Court for the Western District of Virginia a week ago. A day later, DOJ filed a lawsuit against Envigo for alleged violations of the Animal Welfare Act in the facility, seeking damages, Inotiv (NOTV) said, adding that it is cooperating with relevant authorities for the investigation. The company said it is currently looking into matters cited in the complaint and cannot project the costs linked to the allegations. Inotiv (NOTV) shares crashed over 30% in September after announcing plans to offer $110M worth of convertible debt.

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