Pittsfield Sues PathogenX for Repayment of GE Funds

By Brittany PolitoiBerkshires Staff
Print Story | Email Story

PITTSFIELD, Mass. — The city is suing a medical waste company for repayment of GE Economic Development funds. 

A lawsuit filed on June 13 says PathogenX "failed to establish actual and ongoing operations in the City of Pittsfield and furthermore failed to register with the Secretary of the Commonwealth to conduct business in the Commonwealth of Massachusetts." 

In April, the city ordered the company to repay $70,000 that has been disbursed under the $150,000 agreement. As of mid-June, repayments hadn't been made, and Pittsfield officials allege that they were lied to about PathogenX's legitimacy and ability to bring operations to the city. 

"As outlined in the Grant Agreement, the company was required to relocate its operations to Pittsfield and employ a minimum of three (3) individuals in the City by December 31, 2023, with continued operating and staffing levels to be maintained thereafter," an April 7 notice of default and demand of repayment reads.  

"To date, PathogenX has failed to establish operations in Pittsfield and has no employees located within the City." 

In 2023, the City Council allocated $150,000 of General Electric economic development funds to support the company developing a stand-alone onsite device that utilizes thermal heat to convert medical waste into safer waste by killing pathogens, bacteria, and viruses.

At the time, CEO Charles "Chuck" Berkeley, a Pittsfield native, said he wanted to start moving forward immediately with the goal of establishing a manufacturing facility and developing generation two technology by the end of 2024.

Now, a link to the company's website in a 2023 iBerkshires article no longer works, and its status on Pitchbook.com is "out of business." The city alleges that the company "operated as a shell corporation, failed to observe corporate formalities, and was dominated and controlled entirely by Charles Berkeley for personal gain." 

Berkeley, the named defendant, is described as the "sole officer, director, president, treasurer, and secretary of PathogenX, Inc., and exercised complete control over the corporation." 


The city is suing on counts of breach of contract, fraudulent misrepresentation, equitable relief, unjust enrichment, fraud in the inducement, and fraud. Pittsfield asks that the company repay the $70,000 dispersed plus costs, cover attorneys' fees, and "pierce the corporate veil" and hold Berkeley personally liable for the obligations of PathogenX Inc.

It also provides documents showing that PathogenX failed to pay taxes in its home jurisdiction of Wyoming and has been "administratively dissolved" as of October 2024. 

The Economic Development Grant Agreement required PathogenX to establish legitimate business operations in Pittsfield by the end of 2023, stipulating that in the event PathogenX fails to remedy a contract breach within 120 days, it will have to repay all funds disbursed as of the date of the breach. 

The city alleges that the company made material false representations, including the intent to establish legitimate business operations in Pittsfield and comply with the funding contract. 

"These false representations were made knowingly, or with reckless disregard for the truth, and with the intent to induce Plaintiff to disburse public funds," it reads. 

"… Defendants made false representations of material fact to the City, including, but not limited to, opening an office, leasing space, and hiring employees in the City of Pittsfield and its future intentions of establishing operations and meeting job creation benchmarks," 

"Defendants knew these representations were false when made, and/or made them with reckless disregard as to their truth and falsity." 

Update: Devon W. Grierson, city solicitor, said on Friday morning that the city had made demand for repayment from PathogenX and that "they have not responded to any of our communications to date."

An email address could not be found for Berkeley and there has been no response yet for request for comment sent to the company's other co-founder.

"I have aspirations of doing more than just bringing a business here," Berkeley told the Community and Economic Development subcommittee in 2023. 

"I want to do something for the kids. I know when I came up, I didn't have everything that a lot of other kids had, so if I could bring something to the community in that way as well as make PathogenX a household name, that would be really cool. It'll be a big accomplishment."

City of Pittsfield, PathogenX Inc. Lawsuit by Brittany Polito


Tags: economic development,   lawsuit,   

If you would like to contribute information on this article, contact us at info@iberkshires.com.

Pittsfield Council Approves 'Green' Items

By Brittany PolitoiBerkshires Staff

PITTSFIELD, Mass. — The City Council approved a couple of "green" items during its meeting last week. 

This includes more than $20,000 from the state for recycling initiatives, as well as cell phone recycling automated machines at Cumberland Farms on First Street and in Market 32 at 555 Hubbard Ave. 

Pittsfield received $21,000 from the Massachusetts Department of Environmental Protection’s Sustainable Materials Recovery Program, which reinvests a portion of Waste Energy Certificates into recycling programs. More than $4.2 million was distributed across the state this year. 

WECs are tradable, unit-specific certificates (1 per MWh) generated by qualified waste-to-energy facilities. 

"It's supposed to be this self-sustaining cycle of you bring money in, you can continue reducing trash, increasing recycling, increasing diversion from the landfill, and at the same time, you bring money in and support that effort," Commissioner of Public Services and Utilities Ricardo Morales explained. 

In the last two years, the city has seen a slight increase in funds because of its categorization as an environmental justice community, and Morales would like to increase that number even more.  Communities of Pittsfield’s size can see up to $50,000 based on a point system for recycling efforts. 

The city received points for bulky items, curbside recycling regulation, diversity, equity, and inclusion, organics, and waste prevention outreach and education. These funds are used to purchase products such as the composting bins that Pittsfield sells to residents for half the price. 

Morales reported that the city has been saving funds to start a recycling program staffed by a contractor, but that is not being presented "in any way" at this point. 

View Full Story

More Pittsfield Stories