By Ben Glickman


Envigo, a subsidiary of Inotiv, will pay more than $35 million after pleading guilty to animal welfare violations related to a now-shuttered dog breeding facility in Virginia.

The Justice Department said Monday that an entity related to Envigo had pleaded guilty to conspiring to knowingly violating the Animal Welfare Act. The company conspired to knowingly violate the law by failing to provide adequate veterinary care and safe living conditions for dogs housed at the company's shuttered Cumberland, Va., facility, officials said.

A separate entity linked to Envigo pleaded guilty to conspiring to knowingly violate the Clean Water Act by failing to properly maintain wastewater treatment at the facility.

The Justice Department said the resolution was the largest-ever fine in an Animal Welfare Act case.

Inotiv, a contract research organization which acquired Envigo in November 2021, said in a statement that the resolution would allow the company to fully focus on providing customers tools to conduct research. The company said that its top priority has always been to practice appropriate standards of animal welfare and maintain compliant facilities.

Officials originally filed suit against Envigo in 2022. The company agreed to permanently shut down the facility and relinquish the some 4,000 beagles held there to the government.

The Justice Department said Monday that entities linked to Envigo would pay $22 million in criminal fines. The company agreed to pay $3 million to organizations which assisted in the investigation and $3.5 million to the National Fish and Wildlife Foundation to benefit the environment around the Cumberland facility.

Envigo will also spend at least $7 million to improve facilities and personnel beyond legal requirements, officials said. Inotiv said it considered the investment to be in the ordinary course of business.

Inotiv said it had agreed to amend its credit facilities to facilitate compliance with resolution.

The Justice Department said the sentencing is scheduled for Oct. 7.


Write to Ben Glickman at ben.glickman@wsj.com


(END) Dow Jones Newswires

06-03-24 1415ET