We are not disputing that Grin was working on a project it called Final Fantasy : Fortress. What we are disputing is that Square Enix had any involvement in its start. From what I've been able to find, Square Enix has had no documentation about this game. And they ALWAYS announce outside developers working to publish a game in their IP's. They announced DSIII before Obsidian even started working on it.
To Me it sounds like the following happened.
Grin: Man we made a fortune doing that Bionic commando remake, I bet if we picked another ip and made a Game for it we could make even more.
Grin: Spend 6 Months working on a Concept to push to SE.
Grin: Hey Square? We've spent the last 6 months building a concept for a new Final Fantasy.
SE: Wut? Uh ok? Fax us the concepts and we'll go from there.
Grin: Sure... (Sends a bunch of stuff)
SE: This doesn't resemble Final Fantasy, Sorry.
Grin: Wait what about this. (Sends SE their own art)
SE: Listen I don't think you understand, maybe you should just stop?
Grin: Cry Cry Whine Whine bitch, SE didn't give us any money and now we have to close.