Company: NOTV
Filing Date: 2025-12-05
Form Type: 10-K
Source: 0001628280-25-055483
Chunk: 41

Company: Inotiv, Inc.
Filing Date: 2025-12-05
Form: 10-K
Item: Item 7
Chunk 41
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 shareholders on November 4, 2021 (subject to certain exclusions). Plaintiff will seek attorneys’ fees and costs, the amount of which will be determined by the court and funded from the Cash Payment. 

Also on September 25, 2025, the Company reached an agreement in principle to settle (the "Proposed Derivative Settlement") the Derivative Actions (as defined in Note 15 - Contingencies and Commitments). The Company agreed to the Proposed Derivative Settlement to eliminate the uncertainty, burden, and expense of protracted litigation. The Proposed Derivative Settlement does not assign or reflect any admission of wrongdoing or liability by the individual defendants or the Company as the nominal defendant, all of whom deny any wrongdoing. The Proposed Derivative Settlement is subject in all respects to court approval and there can be no assurance that the court will approve the Proposed Derivative Settlement.

If approved by the court, the Proposed Derivative Settlement will fully resolve the Derivative Actions. The Proposed Derivative Settlement credits the plaintiffs in the Derivative Actions for the fact that the Company will receive $2,490 from certain of its insurers to facilitate the resolution of the Securities Class Action, which amount will be utilized by the Company as part of the Cash Payment to the members of the putative class in the Proposed Securities Settlement. The Proposed Derivative Settlement also involves the institution and maintenance of certain corporate governance measures by the Company. These measures are discussed further in Note 15 - Contingencies and Commitments. Plaintiffs in the Derivative Actions will, in addition, seek attorneys’ fees, the amount of which will not exceed $2,250 and will be subject to court approval. The Company expects any award of attorneys’ fees to be funded by available insurance.

As a result of the amounts included in the Proposed Securities Settlement and the Proposed Derivative Settlement described above, the Company has recorded an $11,000 liability and an insurance recovery receivable of $11,000 as of September 30, 2025.

Refer to Note 15 - Contingencies and Commitments for further discussion of the Securities Class Action and Derivative Lawsuits and the related Proposed Securities Settlement and Proposed Derivative Settlement.

2025 Cybersecurity Incident

On August 8, 2025, we became aware of a cybersecurity incident affecting certain of our systems and data (the “2025 Cybersecurity Incident”). Upon identifying encrypted systems, we took steps to contain, assess, and remediate the cybersecurity incident, including initiating an investigation, engaging external cybersecurity specialists, and