EXCLUSIVE: Erkios v. Arch Grants ends

“This case was dismissed by the plaintiff,” said Division 6, 22nd Circuit Judge Michael Stelzer in open court this morning, ending the case of Erkios Systems v. Arch Grants. Within an hour, the following appeared on casenet.

COMES NOW, Jason Wheeler, counsel for counter-claim Petitioner Entrepreneur Business Development Corporation d/b/a Arch Grants, on Arch Grants Motion to Dismiss Count I of Plaintiff’s Petition and for a Case Management Conference. Counsel for Plaintiff failed to appear for the second time on Arch Grant’s motion and for the Case Management Conference. Having received the parties submissions, and having been advised in premises, the Court hereby grants Arch Grants motion as follows:

1. The Court finds that the August 27, 2021 Comprehensive Grant Agreement between the parties is a valid, enforceable contract as a matter of law.

2. The Court denies as moot Arch Grants request that Court I of Plaintiff’s Petition be dismissed on the ground that Plaintiff voluntarily dismissed its Petition in its entirety on April 7, 2023.

3. The Court denies without prejudice Arch Grants oral motion to enter judgment in favor of Arch Grants on its counter-claim, and

4. The parties are to appear for a case management conference on 5/22/23 in Div. 6 at 9am.

Erkios Systems Inc. launched the suit against ‘Entrepreneur Startup Business Development Corporation’ doing business as Arch Grants, alleging breach of contract and seeking $30,000 in unpaid grant money as well as $25,000 for damages as well as reasonable attorney fees involved in filing the suit.

Erkios CEO Sean Null refused to be interviewed for this story and Arch Grants Executive Director Gabe Angieri did not immediately reply to a request for an interview.

Arch Grants stripped Erkios from the section of their website listing 2021 cohort awardees. There are only 32 companies listed there, down from 33 last spring.

Erkios Systems, founded in February 2017, has a patented port security device to provide a physical communication security layer to computers as well as automated monitoring. Erkios was part of the 2021 Arch Grants cohort, and hails from Kansas City, Mo.

The non-profit Arch Grants offers $50,000 equity-free grants (raised to $75K in 2022) and support services to entrepreneurs who locate their early-stage businesses in St. Louis.