Beagle breeding company to pay record $35 million in fines after guilty plea

CHARLOTTESVILLE, Va. (CN) — A company that bred beagles for experiments pleaded guilty to federal animal abuse and environmental protection charges, agreeing to pay a record $35 million in fines.

Subsidiaries of Indiana-based Inotiv Inc. pleaded guilty Monday in a Charlottesville-based federal court to conspiring to knowingly violate the Animal Welfare Act and the Clean Water Act. The $35 million fine is the largest ever in an animal welfare case. The plea agreement also bans the company from breeding or selling dogs.

“Envigo promoted a business culture that prioritized profit and convenience over following the law. This callous approach led to dire consequences: the inhumane treatment of animals and the contamination of our waterway,” United States attorney Christopher R. Kavanaugh said in a statement.

“The historic monetary penalties and significant compliance measures as part of these guilty pleas send a clear message: Every company, in every industry, must have compliance and corporate responsibility as a critical part of their business model,” Kavanaugh added.

The U.S. Justice Department conducted a multiday search of Envigo RMS’ beagle facility in Cumberland, Virginia, in May 2022, filing suit soon after. The department accused the facility of failing to meet minimum standards for handling, housing, feeding, watering, sanitation and adequate veterinary care, among other requirements.

The investigation found a myriad of issues, including dogs subject to euthanasia without sedation and overcrowded kennels full of feces. The beagles were given non-potable water and food sometimes full of maggots and other insects. Staff also withheld food from nursing mothers.

About 445 beagles were found in acute distress, needing immediate veterinary care.

In conjunction with the Justice Department, the Humane Society of the United States took charge of the more than 4,000 remaining beagles through a preliminary injunction. The facility has stopped operations since the investigation began.

The Humane Society distributed the dogs bound for animal testing laboratories to over 120 shelters and rescue partners nationwide.

Kavanaugh said in court Monday that the company knowingly continued to employ a veterinarian who had botched the surgery of several dogs. The vet also oversaw the shipment of sick dogs to laboratories and failed to ensure euthanized dogs were dead before discarding their remains.

“The chief operating officer refused to fire the attending veterinarian, claiming that it was too hard to find a veterinarian at this facility,” Kavanaugh said. “Again, prioritizing profits and convenience over following the law.”

According to the Justice Department, between 2019 and May 2022, Envigo sold nearly 15,000 dogs from the facility for a profit of around $16 million.

While investigating Animal Welfare Act violations, officers also found numerous violations of the Clean Water Act. The on-site wastewater treatment plant used for dog and human waste discharged more than 600,000 gallons of wastewater that failed to comply with permit limits into Maxey Mill Creek.

The investigation found that the treatment system needed improvements, but Envigo failed to invest the money necessary to bring the facility into compliance.

“Envigo compounded the heartbreaking nature of its animal welfare crimes by committing egregious Clean Water Act violations that undermined public health and the wellbeing of the animals in their care,” David M. Uhlmann, assistant administrator of the Environmental Protection Agency’s Office of Enforcement and Compliance Assurance, said in a statement. “Everyone victimized in this precedent-setting animal welfare case deserved better: the workers, the beagles, the environment and the community. Envigo deserves every dollar of its record fine.”

The fines are divided between $11 million for each criminal charge, $1.1 million to the Virginia Animal Fighting Task Force, $1.9 million to the Humane Society and $3.5 million to the National Fish and Wildlife Foundation to restore the ecosystems in Cumberland County. The entities will serve probation from three to five years and need to shell out at least $7 million to improve their facilities and personnel beyond the standards imposed by the Animal Welfare Act.

The company issued a statement saying the agreement would allow them to return to helping with medical research.

“Inotiv’s top priority has always been — and remains — practicing appropriate standards of animal welfare for our animals, while supporting the scientific objectives of the studies conducted,” the company wrote.

Inotiv Inc. has around 20 facilities throughout North America and Europe.

During a hidden-camera investigation at one of their Indiana-based facilities, the Humane Society discovered personnel continuing to give doses of substances to dogs when they were vomiting, unable to stand and showed labored breathing. The dogs at the facility spent their days subjected to force-fed substances via stomach tubes, injections and blood draws.

The U.S. Securities and Exchange Commission launched an investigation into Inotiv Inc. and its subsidiaries in 2023 for violating the U.S. Foreign Corrupt Practices Act in efforts to source monkeys from Asia for use in their animal testing facilities and to sell to other laboratories.

According to the Humane Society, close to 90% of drugs tested on animals ultimately fail in human trials, with approximately half of those failures because the drugs turn out to be toxic for humans, even though they were not toxic for animals. The Humane Society advocates for non-animal testing through organ-chip technologies, artificial intelligence and 3D printing.

“While these beagles have since settled into loving homes, the news of the resolution brings back poignant memories of meeting them for the first time two years ago,” Adam Parascandola, vice president of the Humane Society animal rescue team, said in a statement.

The entities will pay for a monitor to oversee their compliance with the animal welfare standards outlined in the agreement. Sentencing is scheduled for Oct. 7.