If you invested in Inotiv, Inc. during a specific period, you may be eligible for a portion of a $7 million class action settlement. Securities class actions are designed to compensate investors when a company is alleged to have made false or misleading statements that impacted stock prices. Understanding how to navigate the claims process is essential to ensuring you receive any funds you are owed.
This guide provides a straightforward look at the Inotiv securities settlement, who qualifies for the payout, and the specific steps you need to take to file a claim. By following these instructions, you can accurately complete your submission before the court-mandated deadline.
Understanding the Inotiv Securities Settlement
Inotiv, Inc., a company specializing in non-clinical and analytical drug discovery and development services, reached a settlement to resolve allegations regarding its business practices. The lawsuit specifically focused on claims that the company made misleading statements about its compliance with laws regarding the importation of non-human primates for research purposes.
The settlement creates a $7 million fund to pay eligible investors. While the company has denied any wrongdoing, the settlement allows both parties to avoid the costs and risks of a prolonged trial. For investors, this means a guaranteed pool of funds is available for those who suffered financial losses during the designated class period.
Who Is Eligible for a Payment?
To qualify for a payment from this settlement, you must meet specific criteria related to when you purchased Inotiv common stock. The settlement covers what is known as the “Settlement Class.”
Generally, you are a member of the Settlement Class if you purchased or otherwise acquired Inotiv, Inc. (NASDAQ: NOTV) common stock between September 21, 2021, and June 13, 2023, inclusive. Eligibility is based on the timing of your transactions and whether you suffered a loss as defined by the court-approved Plan of Allocation.
Exclusions from the Settlement
Not everyone who owned stock is eligible. Typically, the following parties are excluded:
- Officers and directors of Inotiv during the class period.
- Immediate family members of those officers or directors.
- Legal entities in which the defendants have a controlling interest.
- Individuals who proactively choose to exclude themselves (opt-out) from the settlement.
How to File Your Claim: Step-by-Step
Filing a claim is the only way to receive a payment from the settlement. Even if you received a notice in the mail, you are not automatically enrolled for a payout. You must take action by submitting a Proof of Claim and Release form.
Step 1: Gather Your Trading Records
Before you begin the application, you need to collect all documentation related to your Inotiv stock transactions. This includes brokerage statements or trade confirmations. You will need to provide the following details:
- The number of shares held at the beginning of the class period (September 21, 2021).
- The date of every purchase or acquisition.
- The number of shares purchased and the price paid per share.
- The date of every sale and the price received per share.
- The number of shares held at the end of the class period.
Step 2: Access the Claim Form
You can typically file your claim in two ways: online or by mail. Filing online is generally recommended because it is faster and provides an immediate confirmation of receipt. You can find the official claim portal through the court-appointed claims administrator.
If you prefer to file by mail, you can download a PDF version of the Proof of Claim and Release form, print it, and fill it out by hand. Ensure your handwriting is legible to avoid processing delays.
Step 3: Complete the Form Accurately
The form will ask for your personal contact information, including your name, address, and Social Security number (or Taxpayer Identification Number). This information is required for tax reporting purposes and to verify your identity.
Enter your transaction history exactly as it appears on your brokerage statements. Accuracy is critical; discrepancies between your claim form and your supporting documents can lead to a rejection or a reduction in your payment amount.
Step 4: Attach Supporting Documentation
Whether filing online or by mail, you must provide proof of your trades. Upload or attach copies of your brokerage statements. It is helpful to highlight the relevant Inotiv transactions on these documents to make the administrator’s review process easier.
Step 5: Submit Before the Deadline
The most important part of the process is meeting the deadline. For the Inotiv settlement, the deadline to submit a claim is February 13, 2025. If you are mailing your claim, it must be postmarked by this date. If filing online, it must be submitted by 11:59 p.m. on that day.
Important Dates to Remember
Staying on top of the legal timeline is vital for protecting your rights as a shareholder. Mark these dates on your calendar:
- February 13, 2025: Deadline to submit your Proof of Claim form.
- March 20, 2025: The Settlement Hearing (Fairness Hearing). This is when the court decides whether to officially approve the settlement and the plan for distributing funds.
- Exclusion Deadline: If you wish to sue Inotiv individually, you must have excluded yourself by the date specified in the official notice (typically several weeks before the hearing).
How Much Money Will You Receive?
The exact amount of your payment depends on several factors. It is rarely a simple refund of your losses. Instead, the $7 million fund is divided among all eligible claimants after court-approved fees, expenses, and taxes are deducted.
Your individual payment is calculated based on a “Pro Rata” share. This means your loss is compared to the total losses of everyone else who filed a valid claim. If many people file claims, the individual payouts may be smaller. The timing of your purchases and sales also affects the calculation, as some periods within the class window may have higher “recognized loss” amounts than others.
Frequently Asked Questions
What if I no longer have my records?
Most online brokerage platforms allow you to download past statements or trade confirmations. If your account is closed, you can contact the broker’s customer service department to request historical records. You are responsible for proving your loss.
Do I need a lawyer to file a claim?
No, you do not need to hire your own lawyer to participate in the settlement. The court has already appointed “Lead Counsel” to represent the interests of all class members. However, you are free to consult with your own attorney at your own expense if you choose.
When will I get paid?
Payments are not distributed immediately. The court must first hold the Fairness Hearing to approve the settlement. After approval, the claims administrator must verify thousands of claims. This process can take several months or even over a year following the claim deadline.
Final Steps for Investors
Taking the time to file a claim is a simple way to recover some of the financial losses you may have experienced. Ensure that you keep copies of everything you submit, along with your confirmation number if you file online. This documentation will be essential if there are any questions regarding your eligibility later in the process.
By acting promptly and accurately, you can ensure you are included in the distribution of the Inotiv settlement fund. For more information on navigating financial recoveries and legal settlements, explore our other guides on consumer rights and investment protections.