By Chris Wack


Inotiv Inc. shares rose 18% to $12.56 after the company said its Envigo unit entered into a settlement with the U.S. Department of Justice and the U.S. Department of Agriculture to resolve an investigation into Envigo's facility in Cumberland, Va.

The company said the settlement, which was mutually entered into by all parties involved and approved by the court Friday, doesn't require Envigo to pay fines or penalties to governmental agencies.

Inotiv said the settlement isn't an admission of liability or wrongdoing by Envigo with regard to its past operation of the Cumberland facility.

The company said in June the Cumberland facility needed improvements and investments. Inotiv said it would discontinue investment in the facility and shut it down.

The settlement confirms the facility will close in about 60 days.

Inotiv said that following the closing, Envigo won't engage in activity that requires a USDA license at the site.


Write to Chris Wack at chris.wack@wsj.com


(END) Dow Jones Newswires

07-18-22 1027ET