I have never claimed that they rejected it.
But it's quite clear from the court documents that they have a lot of objections about it
My impression is that they suddenly had objectins to the ERV report several months after receiving it and when they couldn't get the device to work. Basically, Rossi pulled a Fred Flinstone on them, they were unable to get their Dinosaur rockmover to work, and they worked backwards towards where they perceived the problem. Rossi delivered the demo, the device, and the independent ERV report which is what the contract called for. What IH thought they were getting was a toehold into a $trillion business for pennies on the dollar, thinking that with all those 3 things in hand they could easily get the device working -- after all, someone as pedestrian as Rossi did it. But the contract they wrote up was for an $89M demo.