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Auditors challenged Stater Bros.’ interim results.

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After a review, Arthur Young & Co., outside auditors for the Colton-based supermarket company, said that “certain accrual and inventory adjustments” made during the first quarters of fiscal 1985 and 1986 did not conform with generally accepted accounting principles. The company, which suspended Jack H. Brown as president and alleged that he manipulated figures to understate earnings, has issued revised results indicating that the figures were understated for the first period of fiscal 1986 but overstated for the first quarter in fiscal 1985. Separately, Stater Bros. attorneys submitted a request to dismiss the initial suit against Brown filed in Los Angeles County Superior Court. However, a similar suit is being pursued in U.S. District Court.

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