Giant Eagle sues Warren business for fraud, breach of contract

WARREN — Giant Eagle Inc. has filed a federal lawsuit against a Warren company for multiple counts, including fraud and breach of contract.

The lawsuit, filed in U.S. District Court, states Michele Nicholas and Patrick Sheehy, who own Easy Auctions Inc. in Warren, purchased gift cards in bulk from Giant Eagle for charitable purposes last January.

The cards were sold at a discounted rate because they were purchased in bulk.

According to the lawsuit, Nicholas and Sheehy claimed they were purchasing the cards on behalf of Warren VPW Post 0419, and that Nicholas was post president. The cards were to be used for a fundraiser for post patrons.

Giant Eagle, whose corporate headquarters is in Pittsburgh, however, was notified in October and November 2008 that neither Nicholas or Sheehy were affiliated with the post. The cards were used for personal gain, according to the suit.

Giant Eagle claims Nicholas and Sheehy sold the various gift cards at its storefront at 169 W. Market St., and on Easy’s eBay store, Easyauctions.

Giant Eagle is claiming Easy Auctions owes the grocery store company more than $145,000. The company also is seeking an undetermined amount in punitive damages.