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The Wall Street Journal revealed yesterday that Nash Finch, which currently is the subject of a US Securities and Exchange Commission (SEC) investigation into the handling of promotional allowances from manufacturers, was sued two years ago by John A. Haedicke, a former CFO of the company who charged that he was fired when he wouldn’t overstate earnings.

The news story caused the company’s stock price to fall by almost a third yesterday.

Haedicke’s lawsuit charged that he "corrected certain irregularities in the financial records of Nash Finch" and refused to follow orders to "take certain improper actions regarding those records, which would have had the effect of overstating the income and earnings of the company." He was fired for “poor performance,” and filed the lawsuit.

The company denied the charges, and the suit was finally settled, though the terms were not disclosed.
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