Pittsfield Sues PathogenX for Repayment of GE Funds

By Brittany PolitoiBerkshires Staff
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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,   

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BRTA Focuses on a New Run Schedule

By Breanna SteeleiBerkshires Staff

PITTSFIELD, Mass. — The Berkshire Regional Transit Authority is still working on maintaining its run schedules after dropping the route realignment proposal.

Last Thursday's meeting was Administrator Kathleen Lambert's first official meeting taking over the reins; retiring director Robert Malnati stayed during a transition period that ended last month.

Lambert is trying to create a schedule that will lessen cancellations. There was a two-hour meeting the week before with the drivers union to negotiate run bids and Lambert is working with the new operating company Keolis, which is taking over from Transdev.

The board spoke about anonymous emails from drivers, which Lambert said she has not seen. iBerkshires was not able to see those letters, but has received some. 

"They were lengthy emails from someone describing themselves as concerning BRTA employee, and there was a signed letter from a whole group of employees basically stating their concerns. So, you know, to me, it was a set of whistleblowers, and that, what my understanding is that this really triggers a need for some type of process to review the merits of these whistleblowers, not going to call them accusations, but basically expressions of concern," said member Stephen Bannon.

A letter iBerkshires received spoke of unhappy drivers who were considering quitting because of decisions being made without "input from frontline staff," frustration and falling morale, and the removal of the former general manager shortly after Lambert came in.

Lambert said it's difficult to navigate a new change. She also noted many drivers don't want to do Saturday runs and it has been hard negotiating with drivers on the new runs.

"I would like you all to keep in mind that the process of change is super difficult. Transdev has been here for 20 years, and some of these drivers have never known any other operating company, the way some of the operations have been handled has been archaic," she said. "So getting folks up to speed on how a modern transit system works is going to be painful for them. So I don't want to say that I'm unsympathetic, because I am sympathetic, but I am trying to coax people along with a system that's going to seem very strange to them."

The board spoke about better communication between them and Lambert, citing cooperation will be best moving forward.

"There's just a lot of stuff in the air right now, and there are a lot of fires to put out to make this a coordinated effort. And if we don't keep our communications open and be straightforward, then you get blindsided about how you know the input that you could get from us about your position, and how you know what's going on in your direction, and we get blindsided. And I think that we have to make sure that this is a collaboration," said member Sherry Youngkin.

"Both sides have responsibilities, because in the long run, this advisory board is going to have to make decisions as to how we brought forward and if we've gone forward in a fair and helpful way. And I think that's hopefully what everybody is looking for also." 

Transdev and Keolis held a three-day recruiting event interviewing almost 40 candidates and offering jobs to eight, but only three stayed on to start training. Lambert said it was disappointing but she will keep trying to retain more people.

In her first report to the board, she noted that ridership dipped a little over 10 percent, but still remains higher than last year, adding that was because of cancellations of services because of the lack of drivers.

Like the last meeting, some of the advisory board members were torn over the start of the Link413 service, worried that the start of the service took drivers away and the numbers of riders are low.

Lambert, however, said the ridership has doubled from last month.

"As I've spoken before, we have, generally, a six-month adoption for brand-new service before you can really go in and evaluate, are you being successful based on the grant that my predecessor wrote along with the team for PBTA and RTA, we are ahead of schedule, which is pretty good, so I'm hoping that will continue to improve," she said.

Member Renee Wood said the board never approved the service, adding the only thing she could find in the minutes was a vote to accept the equipment. She said it was supposed to be put on the agenda to discuss.

"The Link413 service has been three years in the making. It's been a grant that was accepted and has been working with our partners, PVTA and FRTA, to put into place. So I don't have the entire history of how that process worked, but it's been three years in the making, and did we not understand that once we accept that grant that we were going to put in new service?" Lambert said.

The board discussed if Title VI, the Civil Rights Act, was followed with an accurate review and accurate amount of time for public comment period on the service changes and if its attorney should review if the  grant conditions were properly followed.

Lambert said changes had the 60-day comment period included in the proposed route realignment packet, giving the opportunity for the community to respond to that as well but will look into the legality of the situation with their attorney.

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