Inotiv settles lawsuit with $7.55 million agreement

Inotiv, Inc. (NASDAQ:NOTV), a commercial physical and biological research services company with annual revenue of $475.11 million, has reached a settlement agreement with Freese and Nichols, Inc. (FNI) to resolve a lawsuit over a dispute regarding wastewater treatment facility design.

The settlement, announced on Monday, stipulates that FNI will pay Inotiv $7.55 million, a meaningful sum for the company currently valued at $128.03 million. According to InvestingPro analysis, Inotiv's shares currently trade below their Fair Value, with 8 additional key insights available to subscribers.

The conflict originated from FNI's alleged failure to design an adequately sized lagoon for the disposal of both current and future expanded operations' wastewater at Inotiv's Alice, Texas location. Under the terms of the agreement, all claims in the lawsuit will be fully resolved without any admission of liability by either party. This settlement comes at a crucial time, as InvestingPro data shows the company operates with a significant debt burden of $447.11 million and has been quickly burning through cash.

The agreement requires FNI to make the payment within 30 days following the date of the settlement, which was finalized on February 14, 2025. The financial impact of this settlement will be reflected in Inotiv's financial statements once the payment is received.

Inotiv, formerly known as Bioanalytical Systems Inc., is headquartered in West Lafayette, Indiana, and operates under the SIC code for Services-Commercial Physical & Biological Research. This settlement comes as a significant event for the company, as it moves past the lawsuit and focuses on its core operations.

The settlement agreement was duly reported in an 8-K filing with the Securities and Exchange Commission (SEC), ensuring transparency and compliance with regulatory standards.

For deeper insights into Inotiv's financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers this and over 1,400 other US equities.

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